The central bank’s latest policy statement was released Wednesday.

Officials at the Federal Reserve on Wednesday signaled that they could “soon” raise interest rates for the first time in three years, as inflation concerns cast a shadow over the economy.

The central bankers said in a statement Wednesday that they were leaving rates unchanged for now, at near-zero levels, but with a recovering labor market and the threat of inflation, this will likely change in the near future.

“With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate,” the Fed said in a statement Wednesday.

The officials also reiterated Wednesday that they expect to end their pandemic-era bond buying program meant to buoy the economy during the health crisis by early March. They added that the economic recovery, however, still remains at mercy of the virus.

“The path of the economy continues to depend on the course of the virus,” the statement said. “Progress on vaccinations and an easing of supply constraints are expected to support continued gains in economic activity and employment as well as a reduction in inflation. Risks to the economic outlook remain, including from new variants of the virus.”

This is a developing story. Please check back for updates.



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