Fed keeps key interest rate unchanged

NEW YORK

The Federal Reserve on Wednesday left its key interest rate unchanged.

The Federal Open Market Committee that governs the rates "decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent", it said in a statement after one of its eight yearly meetings.

"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," it added.

The 7-3 vote fueled speculation the rate hike might still be in the making during the committee’s final meeting in December.

The dissenting group included Boston Fed chief Eric Rosengren, who said earlier this month that the central bank could "continue to pursue a gradual normalization of monetary policy", a comment that was perceived as hawkish and helped to push market lower Sept. 9.