Fed holds, but points towards future rate rise

The US Federal Reserve kept the Fed funds rate at 0.25-0.5% at its latest meeting overnight, but sent a strong signal for an interest rate rise in December. Explicit reference was made in the Fed’s press conference to the strong labour market and solid economic data in July and August as evidence for a strengthened case for a rate rise this year. Furthermore, the Federal Reserve Board was split over the decision, with three officials casting voting for a raise immediately.