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U.S. Federal Reserve Chair Janet Yellen speaks during a news conference in Washington D.C., capital of theUnited States, Sept. 21, 2016. The U.S. Federal Reserve on Wednesday kept its federal funds rate unchanged amid recent weak economic data and tepid inflation, but signaled that the central bank could have one rate hike by the end of this year. (XinhuaBao Dandan)
WASHINGTON, Sept. 21 (Xinhua) -- The U.S. Federal Reserve on Wednesday kept its federal funds rate unchanged amid recent weak economic data and tepid inflation, but strongly signaled that the central bank could have one rate hike by the end of this year.
"The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives," the Fed's policy-making committee said in a statement released after its two-day meeting.
"The economy has a little more room to run than might have been previously thought. That's good news...we don't see the economy as overheating now," Fed Chair Janet Yellen said Wednesday at a press conference, suggesting the Fed had the opportunity to allow the labor market to continue to improve without running a hot economy.
Fed governors Lael Brainard and Daniel Tarullo have both recently argued that the central bank should wait for more evidence of sustained inflation before another rate hike.
The core price index for personal consumption expenditure (PCE), the Fed's preferred indicator for gauging core inflation excluding food and energy, increased 1.6 percent in July from a year ago, still below the central bank's target of 2 percent.