Fed Holds Rates, On Track for December Hike

As was expected, the Federal Open Market Committee (FOMC) did not raise rates at the close of its two-day meeting Thursday despite citing a strengthening labor market and increased economic activity.

The federal funds target rate was last increased by a quarter-point to a range of 2 to 2.25 percent during the FOMC's September meeting. That was the third rate hike this year.

In its release, the committee noted that "job gains have been strong, on average, in recent months, and the unemployment rate has declined. Household spending has continued to grow strongly, while growth of business fixed investment has moderated from its rapid pace earlier in the year."

The FOMC will meet again in December.