Fed keeps key interest rate unchanged, but hints of coming hike

WASHINGTON (AP) — The Federal Reserve is keeping a key interest rate unchanged but sending a strong signal that it will likely boost rates before the end of the year.

The Fed said in a statement today the U.S. job market has continued to strengthen and economic activity has picked up.

It characterized the near-term risks to the economic outlook as “roughly balanced.” It was the first time it has used that wording since last December, when it last raised rates. Most analysts have said they think the Fed will next raise rates in December.

For the first time in nearly two years, there were three dissents to the Fed’s statement Wednesday.