WASHINGTON: The Federal Reserve kept interest rates unchanged on Wednesday in its last policy decision before the US election, but signaled it could hike in December as the economy gathers momentum and inflation picks up. After the Fed decision, US stocks extended earlier losses and 10-year Treasury yields fell to session lows of 1.78 per cent. The policy decision came less than a week before an increasingly uncertain presidential election. Investors had all but discounted a rate increase this week, but overwhelmingly see the Fed raising borrowing costs next month. In September, Fed Chair Janet Yellen said that a move before year's end was likely as long as US employment and inflation continued to strengthen.

Source: Economic Times November 02, 2016 18:10 UTC