Fed leaves key rate unchanged but hints at future hikes

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WASHINGTON (AP) — With a new Federal Reserve leader about to be announced, the Fed is keeping its key interest rate unchanged. It also hints that it's preparing to resume raising rates as the economy shakes off the impact of recent hurricanes.

The Fed's decision left its benchmark rate in a low range of 1 percent to 1.25 percent. It's expected to hike rates in December. Its statement notes the economy has been rising "at a solid rate despite hurricane-related disruptions."

The Fed reiterated that inflation will resume moving toward its 2 percent target and said it was proceeding with a program to shrink its bond portfolio.

President Donald Trump says he will announce his choice for Fed chair on Thursday. Fed board member Jerome Powell is assumed to be the top contender.