The U.S. Federal Reserve on Wednesday indicated it believes the American economy continues to expand at a moderate pace and would be able to handle a small hike in short-term interest rates. In a statement the Federal Open Market Committee reaffirmed its view that the current 0% to 0.25% percent target range for the federal funds rate remains appropriate, however, it said if indications are that inflation is starting to run greater than its goal of a 2% annual increase “then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated.”
