Fed leaves rates alone amid low inflation but moves closer to selling off bonds

Washington • The Federal Reserve is keeping its key interest rate unchanged at a time when inflation remains persistently low. But it signaled Wednesday that it’s edging closer to gradually shrinking its bond holdings, a step that would likely boost long-term borrowing rates including mortgages. The Fed noted Wednesday in a statement that inflation has stayed undesirably low even though the job market keeps strengthening, with the unemployment rate just 4.4 percent. Normally, solid hiring drives...

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