(Bloomberg) — Fed officials left U.S. rates unchanged and stuck with an agenda to gradually lift borrowing costs amid “strong” growth that backs bets for that hike in September.

Economic activity has become “rising in a strong rate,” and unemployment “has stayed low,” the federal government Open Market Committee said Wednesday inside of a statement released in Washington. “Household spending and business fixed investment have started strongly.”

While leaving rates on hold as you expected, the committee repeated guidance for “further gradual increases” rolling around in its policy benchmark, arranging September’s FOMC meeting for the third hike of the year.

President Donald Trump lashed out on the Fed a few weeks ago, saying he wasn’t “thrilled” that it was raising rates. The comments threw a political cloud in the central bank’s decisions, though economists and investors had widely anticipated Wednesday’s decision.

Policy makers “are not really affected or paying close appreciation of the political commentary,” said Laura Rosner, senior economist at Macropolicy Perspectives.

Stocks and bonds shrugged over Fed announcement, while using the Standard & Poor’s 500 Index closing down 0.1 % along with the 10-year Treasury yield at 3 percent at 4 p.m. Big apple time. Odds for any rate hike at the central bank’s Sept. 25-26 meeting held around Eighty percent.

“The FOMC didn’t do anything to your statement which would suggest a lower probabilities of a September hike,” said former Fed Governor Laurence Meyer, who runs a policy research firm in Washington. “Industry has priced a September rate hike being a near-certainty, and now we agree with that assessment.”

Fed Chairman Jerome Powell is attempting to nurture the second longest U.S. expansion on record by slowly reducing the degree of support that monetary policy provides to growth. The economy is riding a tailwind from tax cuts greater federal spending, though a trade war threatens to dent growth.

The committee described risks to your outlook as “roughly balanced,” and restated that “monetary policy remains accommodative” while leaving the objective range because of its benchmark policy rate at 1.75 percent to two percent.

Most Fed officials in June projected a few rate hikes for 2018, implying a couple more moves in 2010.

“There’s loads of concern which the trade negotiations along with the heightened rhetoric surrounding trade negotiations might trigger slower economic activity later in the year,” said Mark Vitner, senior economist at Wells Fargo (NYSE:WFC) Securities LLC in Charlotte, North Carolina. “As it certainly seems as if it’s all systems are opt for another rate hike in September, and yet another one inch December, the written text hasn’t been written yet with that.”

Pricing in federal funds futures markets imply odds slightly above 60 % for just a fourth rate hike in December.

Policy makers weighed their action against a generally positive backdrop. The U.S. economy grew with a 4.One percent pace in the second quarter, its fastest pace since 2019. Inflation is close to the Fed’s 2 percent goal, rising at 2.2 percent for your year ending June, even though the core rate that excludes food as well as energy was up 1.9 %.

The committee noted while in the statement that both headline and core inflation “remain near 2 percent.”

Unemployment was 4 % in June, underneath the Fed’s 4.5 percent estimate of your level that reflects full employment. The gradual pace of rate increases demonstrates officials want to see if tight labor markets might as well draw the best way to into your workforce and provide higher wages, without sparking unwanted inflation.

Wednesday’s decision was unanimous 8-0. Voting members shifted chairs around this meeting, with John Williams voting for the first time as Ny Fed president and FOMC vice chairman, with Might Fed chief Esther George taking his place as a possible alternate for San fran even as it seeks a whole new president.