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Fed: Rates won’t go up anytime soon

Associated Press • Aug 27, 2014 at 3:12 PM

The U.S. economy still isn’t healthy enough to grow at a consistently strong pace without the Federal Reserve’s help.

That was the message Fed Chair Janet Yellen sent Wednesday at a news conference after the central bank ended a two-day policy meeting.

Yellen made clear that despite a steadily improving job market and signs of creeping inflation, the Fed sees no need to raise short-term interest rates from record lows anytime soon.

Her remarks followed a statement from the Fed that it would further slow the pace of its long-term bond purchases. The bond purchases have been intended to keep long-term loan rates low. But the Fed offered no clear signal about when it will start raising its benchmark short-term rate.

Most economists think a rate increase is at least a year away despite signs of rising inflation. At her news conference, Yellen downplayed inflation concerns.

Recent inflation figures are “noisy” she said.

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