Fed signals December hike on track

Federal Reserve officials voted unanimously Wednesday to leave interest rates unchanged while signaling they remain on track to hike once more this year, a day before President Donald Trump plans to unveil his choice to lead the U.S. central bank.

Recent data indicate that 'the labor market has continued to strengthen and that economic activity has been rising at a solid rate despite hurricane-related disruptions,” the Federal Open Market Committee said in a statement Wednesday following a two-day meeting in Washington, D.C.

Officials gave no sign that their expectations for a third interest-rate increase this year have been derailed. The Fed repeated its assessment that while inflation may 'remain somewhat below 2 percent in the near term,” it's expected to stabilize around the central bank's 2 percent objective 'over the medium term.”

The statement is likely to reinforce expectations for a December hike. Pricing in federal funds futures contracts before the release implied an 85 percent probability of a quarter-point move next month, when Chairwoman Janet Yellen is scheduled to hold her next news briefing.

Policy makers wrapped up their meeting as the larger drama surrounding the Fed's future leadership approached its climax. Just before the committee statement was released, Trump said he'll announce his pick Thursday afternoon.

The president is leaning toward picking Fed Gov. Jerome Powell, according to three people familiar with the matter.

Powell, a Republican and former Treasury official, has supported Yellen's policy of gradual rate increases while calling for a modest rollback of post-crisis financial regulation.