Federal Reserve Holds Rates Steady, Says Economy Is Strong

The Federal Reserve held short-term interest rates steady Wednesday and offered an upbeat assessment of the economy’s performance, suggesting another interest-rate increase is likely at its next meeting.

The Fed repeatedly emphasized the economy’s strength in a statement released after its two-day policy meeting. It offered nothing to dispel market expectations that it would deliver its third interest-rate increase of the year when it meets in late September.

“Economic activity has been rising at a strong rate,” the statement said. In all, the Fed’s rate-setting committee used the word “strong”—or a derivative of it—six times to describe the economy and labor markets.

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