As expected, the Federal Reserve announced today that it would maintain current interest rates. The news came in an announcement from the Fed’s governing body, the Federal Open Market Committee (FOMC), which concluded a two-day meeting today.
The FOMC did leave the door open for future rate moves, saying it would “continue to monitor” the economic situation as it assesses the appropriate target range for interest rates.
“Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee decided to maintain the target range for the federal funds rate at 1‑1/2 to 1-3/4 percent,” the FOMC said in a statement. “The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective. The Committee will continue to monitor the implications of incoming information for the economic outlook, including global developments and muted inflation pressures, as it assesses the appropriate path of the target range for the federal funds rate.”
The Fed cut rates three times last year.