WASHINGTON, Nov. 2 (UPI) -- For the seventh straight time this year, the Federal Reserve decided Wednesday to leave benchmark interest rates alone.
The Federal Open Market Committee concluded its two-day policy meeting on Wednesday with the decision that market conditions don't warrant another hike to the federal funds rate. In fact, the Fed has completed each meeting since December with the same conclusion.
"Household spending has been rising moderately but business fixed investment has remained soft," the central bank said in a statement. "Inflation has increased somewhat since earlier this year but is still below the committee's 2 percent longer-run objective."
The committee believes a 2 percent inflation threshold is a good indicator of whether the economy can handle an interest rate hike. Though it's currently below that threshold, the Fed said it expects inflation to surpass the 2 percent mark in the medium term, "as the transitory effects of past declines in energy and import prices dissipate and the labor market strengthens further."
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Though it again decided to leave rates unchanged, the Federal Reserve noted that conditions for an increase are steadily getting better. It said the 10 committee members could have hiked rates, but opted "to wait for some further evidence of continued progress toward its objectives."
Eight of the panel's 10 members, including chairwoman Janet Yellen, voted to leave rates unchanged. Two voted for an increase -- down from three who dissented at the last meeting in September.
The last increase in the federal funds rate occurred nearly a year ago, when the committee raised rates (from near zero) for the first time in nearly a decade.
The committee's final policy meeting of 2016 is scheduled for Dec. 13-14.
