WASHINGTON (MarketWatch) – The Federal Reserve left a key interest rate unchanged in November but called the U.S. economy “solid,” an apparent signal the bank remains on track to raise the cost of borrowing next month. The central bank had previously projected it would raise its benchmark fed funds rate, now between 1% and 1.25%, at its final meeting on Dec. 12-13. In a statement, the Fed also acknowledged core inflation “remained soft” and is likely to remain so in the short run. The Fed still expects inflation to reach its 2% target in the “medium term,” however. The more muted language on inflation might be a clue the bank will proceed more cautiously early in 2018, especially if Chairwoman Janet Yellen is replaced as widely reported.
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