US Fed keeps rates same, says inflation to 'move up'
1 Feb 2018 11:48 PM IST
Washington DC: The Federal Reserve left the benchmark interest rate unchanged on Thursday after its first policy meeting of 2018, but said it expects inflation to move up this year -- a possible signal of faster rate increases ahead.
In the last meeting of Fed Chair Janet Yellen's tenure, the policy-setting Federal Open Market Committee said while price measures have remained below the central bank's two percent target, "inflation on a 12-month basis is expected to move up this year."
That change of language will fuel expectations that the US central bank could raise the key lending rate more than the expected three times this year.
In December, the committee said inflation was "expected to remain somewhat below two percent in the near term."
The change in tone will certainly reinforce the view among analysts that the first rate increase of 2018 will come in March.
The debate will be over how many more steps the central bank will take this year.
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