Fed stays cautious on rate hike

The Federal Reserve announced Wednesday that it was not raising interest rates just yet.

While the central bank said the labor market has improved, it said in its latest policy statement that there is room for further growth while inflation remains low.

{mosads}“The labor market continued to improve, with solid job gains and declining unemployment,” the Fed said in a statement. “On balance, a range of labor market indicators suggests that underutilization of labor resources has diminished since early this year.”

The Fed gave no hint as to when it might consider raising rates for the first time since the financial crisis. Voting Fed members unanimously signed off on the central bank’s latest policy statement.

Fed Chairwoman Janet Yellen has said she anticipates that if the economy continues to improve as expected, the Fed could raise rates later this year.

In its new statement, the Fed said it would be time to raise rates after it sees “some further improvement” in the labor market, as well as signs that inflation could be swinging back upward.