Övünç Kutlu
02 November 2016•Update: 03 November 2016
By Ovunc Kutlu
NEW YORK
The Federal Reserve kept its benchmark interest rate unchanged Wednesday for the seventh time this year.
Markets and investors now shift focus to the bank’s last meeting of the year next month.
The dovish sentiment among Federal Open Market Committee (FOMC) members increased in the Fed's November meeting.
Eight members voted to keep rates steady, while Kansas City Fed President Esther George and Cleveland President Loretta Mester preferred a hike.
Boston Fed President Eric Rosengren changed his position from the group’s September meeting to vote to keep rates unchanged Wednesday.
The likelihood of a rate hike has strengthened, the FOMC said, but added the bank would "wait for some further evidence of continued progress toward its objectives" of the targeted 2 percent inflation and more improvement in the labor market.
Inflation in the U.S. increased 1.2 percent during the 12 months ending in September, compared to 0.8 percent in the 12 months ending in July.
The economy expanded at an annual pace of 2.9 percent in the third quarter.
The markets will now closely watch October unemployment figures that will be released Friday when a number of FOMC members are expected to make public comments.
The Fed might have decided not to change rates before the U.S. presidential elections next week, according to analysts, but bank officials have said its decisions are not influenced by politics.
The FOMC's last meeting this year will be Dec. 13-14 -- a year after the Fed’s last rate hike.
