The central bank’s Federal Open Market Committee kept the target federal funds rate — or the interest rate banks charge one another for overnight lending — at a range of 0.25 percent to 0.5 percent. The federal funds rate is the benchmark for short-term borrowing rates throughout the economy, including auto loans and some housing loans. Maintaining the current target federal funds rate almost certainly ensures that the cost of borrowing for consumers and businesses will remain low. Donald Trump, the Republican presidential nominee, has accused Yellen of keeping interest rates low to bolster President Barack Obama’s legacy. A higher federal funds rate would give the central bank more ammunition to stimulate the economy when the next recession rolls around.

Source: Huffington Post September 21, 2016 18:05 UTC