A heavily divided Federal Reserve left short-term interest rates unchanged yesterday but said the case for a rate increase had strengthened, in a strong signal that a move is likely before the end of the year.
Three of the US central bank’s 10 policymakers voted for an immediate rise. But the Fed said that for the time being it wanted to keep policy on hold as it waits for further evidence of progress towards its objectives. It left the target range for the federal funds rate at 0.25 per cent to 0.5 per cent.
The opposition was a notable departure given Fed chair Janet Yellen’s previous efforts to keep dissent to a minimum, underscoring the intensity of the current policy debate the US central bank.
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