Fed holds rates but signals possible hike in December

Dependent on employment and inflation

The latest statement from the US Federal Reserve suggests a rate hike remains on the cards at the next meeting in December, as the bank once again held them unchanged at its meeting yesterday.

In a statement by the Fed after the meeting on 27-28 October, the bank referenced a decision it could make at its "next meeting", to be held on 15-16 December. "In determining whether it will be appropriate to raise the target range at its next meeting, the committee will assess progress - both realised and expected - towards its objectives of maximum employment and 2% inflation." In reaction, the US dollar rose sharply and yields on US government debt soared on expectations of higher rates in December. Four facts dictating the path of UK and US interest rates Speaking to Reuters...