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Fed Preps Careful Path for Rate Hike

Wall Street Journal (07/30/15) Jon Hilsenrath; Ben Leubsdorf

The U.S. Federal Reserve yesterday left its benchmark short-term interest rate near zero, but officials implied that they are seeing enough improvement in the job market to raise interest rates as early as September. Fed officials expressed concern that inflation remains too low, so rates likely will be raised gradually. The Fed previously stated that it would raise interest rates when it saw improvement in the job market and became “reasonably confident” that inflation is on course to return to 2%.