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By Ann Saphir SAN FRANCISCO (Reuters) - The U.S. Federal Reserve is expected to keep interest rates unchanged this week, deferring any possible increase until September or December, as policymakers hold out for more evidence of a pickup in inflation. Central to the debate at the Fed's July 26-27 policy meeting will be how to reconcile upbeat U.S. economic data, highlighted by strong job gains in June, with a global growth slowdown and other headwinds threatening the inflation trajectory. For San Francisco Fed President John Williams, one of the 17 members participating in the central bank's rate-setting deliberations, all that is needed is a bit more confidence that inflation is indeed headed toward the Fed's 2 percent target.
Bangladeshi police killed nine suspected Islamist extremists in a gun-battle Tuesday after storming a hideout where they said a new mass attack was being planned. "Nine Islamist militants were killed after two hour-long gunfight" deputy commissioner of Dhaka Metropolitan Police (DMP) Masud Ahmed told AFP, adding another extremist was shot and arrested during the raid in the capital's Kalyanpur neighbourhood. National police chief A.K.M Shahidul Hoque told reporters they suspected all 10 were members of the homegrown extremist group Jamayetul Mujahideen Bangladesh (JMB), which was blamed for the Dhaka cafe attack.