FEDERAL RESERVE LEAVES KEY OVERNIGHT INTEREST RATE UNCHANGED IN 3.50-3.75% RANGE, SAYS IT WILL DELIVER PRICE STABILITY

Federal Reserve leaves key overnight interest rate unchanged in 3.50-3.75% range, notes it will deliver price stability Fed: inflation remains elevated relative to 2% goal, in part reflecting supply shocks in certain sectors including energy - Economic activity is expanding at a solid pace despite elevated uncertainty - Productivity growth and capital investment are strong - FOMC is continuing policy of maintaining ample reserves in the Banking system - Job gains have kept pace with workforce, unemployment rate has changed little Fed vote in favor of policy was 9-3, with cleveland Fed President hammack, minneapolis Fed President Kashkari and dallas Fed President Logan dissenting in favor of a 25-basis-point increase