Policymakers at the US Federal Reserve have kept the key interest rate unchanged. But their positive view for the country's economy is raising speculation that a rate hike may be on the way.

The Fed announced the decision after a two-day meeting of the Federal Open Market Committee that ended on Wednesday.

A statement released after the meeting says the US labor market strengthened and economic activity has been expanding at a moderate pace.

It also says the committee continues to monitor global economic and financial developments.

The Fed has decided against an interest rate increase for five policy meetings in a row.
But the Fed said near-term risks to the economic outlook have diminished.

The US economy is believed to have grown more than two percent in the April-June quarter.

Some analysts expect that the Fed may raise the rate as early as in its next policy meeting in September.

Published Date:2016-07-28