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Fed Holds Movement On Short-Term Rate Hike In September

The Federal Reserve

Wrapping up its two-day meeting, the US Federal Reserve has decided to leave short-term interest rates unchanged, though policymakers did imply plans to raise rates before the end of the year

The lack of movement underscored central bankers' sense of urgency in providing economic stimulus, the Wall Street Journal reports, particularly with inflation rates hovering below 2% and unemployment remaining around 5%

Financial markets were unsurprised by the Fed's decision, and investors took to relief buying before the market closed. Before the statement hit, the Dow Jones was up 27 points, or 4%, while the S&P 500 was up 10 points, or 5%. Crude oil is up 2.6% to $45.20 a barrel and the dollar was down 0.3% compared to the euro. [WSJ]