WASHINGTON—The U.S. Federal Reserve has left its key interest rate unchanged at a time of solid economic gains but also heightened uncertainty surrounding the new Trump administration. But it signalled that it wants more time to monitor the economy and that it still envisions a gradual pace of rate increases. Many economists think the Fed may put off further rate increases until more is known about President Donald Trump's ambitious agenda, or whether his drive to cancel or rewrite trade deals will slow growth or unsettle investors. Last month, the Fed modestly raised its benchmark short-term rate for the first time since December 2015, when it had raised it after keeping the rate at a record low near zero for seven years. The Fed had driven down its key rate to help rescue the banking system and energize the economy after the 2008 financial crisis and the Great Recession.

Source: thestar February 01, 2017 19:18 UTC