With Economy Humming, Fed Opens Door To September Rate Hike

(RTTNews) - The Federal Reserve on Wednesday held steady on interest rates but opened the possibility of a rate hike in September, noting that "near-term risks to the economic outlook have diminished."

After expressing some jitters about the pace of economic growth earlier in the year, policy makers were encouraged by recent data pointing to a resilient U.S. jobs market and stronger housing.

The vote to keep interest rates at 0.25 percent was 9-1, with Kansas City Fed President Esther George dissenting in favor of a 0.25 percent increase.

"Information received since the Fed policy committee met in June indicates that the labor market strengthened and that economic activity has been expanding at a moderate rate," the Fed said.

Business investment remained "soft," but U.S. economy has thus far withstood the UK's shock Brexit vote and political uncertainties related to the Trump-Clinton showdown.

The Fed will not meet again until September, but traders will be paying close attention when Chairwoman Janet Yellen speaks at the Fed's summer retreat in Jackson Hole, Wyoming mid-August.