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24 Jul 2018 at 23:25

 


 


WASHINGTON Authentic Cody Eakin Jersey , 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 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.


 


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.


 


"Almost since the turn of the year core inflation has been stuck at 1.5 percent with really no clear signs that it's moving up yet," said David Stockton, former Fed chief economist and senior fellow at the Peterson Institute of International Economics.


 


"I do think the case for patience and waiting just a bit longer is to make sure that in fact the Fed's expected return to 2 percent looks like it's actually under way," he added.


 


But Kansas City Fed President Esther George, Cleveland Fed President Loretta Mester and Boston Fed President Eric Rosengren all voted against the policy statement, saying they preferred to raise rates at this meeting.


 


The opposition underscored the intense policy debate inside the central bank and a heavily divided Fed over rate hikes.


 


The Fed's updated projections released Wednesday showed that policymakers expected the federal funds rate to rise to around 0.625 percent at the end of 2016, implying one rate hike this year, down from two estimated in June.


 


The Fed also said in the statement that near-term risks to the U.S. economic outlook "appear roughly balanced," a further sign that the central bank could raise rates by the end of this year.


 


The Fed will hold its next two policy meetings on Nov. 1-2 and Dec. 13-14. About 74 percent of 62 economists surveyed by The Wall Street Journal this month believed that the Fed will wait until December to raise rates.


 


The Fed raised its target range for the federal funds rate by 25 basis points to 0.25-0.5 percent in December last year, the first rate hike in nearly a decade.


 


However, a slowdown in global economy since the start of this year and other global financial risks have made Fed policymakers cautious and hold off on any further rate hikes.


Andy Murray competing in the final of the Vienna Open on Sunday in Vienna, Austria. Photo: IC


Two-time Grand Slam winner Andy -Murray will continue his bid to reach next month's ATP World Tour Finals at the -Valencia Open this week fresh from his -second tournament victory of the season in Vienna.


 


The Scot beat David Ferrer 5-7, 6-2, 7-5 on Sunday to claim the title on his first appearance in the Austrian -capital to move ahead of the Spaniard into the -final qualifying spot for the season--ending -finals in London.


 


With five of the eight places already secured and US Open finalist Kei Nishikori almost guaranteed his Tour Finals debut, there is a five-way battle between Murray, Ferrer, Tomas Berdych, Milos Raonic and Grigor Dimitrov for the remaining slots.


 


Berdych joins Murray and Ferrer in the south of Spain having also claimed his second title of the year in Stockholm with a 5-7, 6-4, 6-4 win over Dimitrov.


 


"Every event is so important now with the race for London going strong," said Murray, who will be playing in his fourth event in as many weeks.


 


Murray's victory in Vienna moved the 2013 Wimbledon champion 110 points clear of Ferrer, who also has 300 points to defend in Valencia having been bested by Mikhail Youznhy in last year's final.


 


The two are on course for another meeting in the Spanish semifinals with three-time champion Ferrer the top seed and Murray seeded third.


 


"It's the same for both of us, we've had very close matches," said Murray, who now holds a 8-6 head-to-head record over Ferrer. "Whoever qualifies for London will deserve it."


 


Ferrer is determined to con-tinue the battle at next week's final qualifying tournament at the Paris Masters.


 


"Andy played a great match and deserved to win the title," said the 32-year-old. "I had my chances but it was so tough today. I'm going to keep fighting for London."


 


Berdych's 10th career title in the Swedish capital kept his Tour Finals bid on track and the second seed appears to have an easier draw in Valencia.


 


"There are 250 freshly baked ranking points but it is still not the end, the battle is still on and we are still going to fight for that," he said.


 


The Czech starts off against Spaniard Pablo Andujar and could face American John -Isner in the last eight.


 


Murray is up against Austrian Jurgen Melzer, while Ferrer faces Italian Andreas Seppi in the first round.


 


(Agencies)


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