The Federal Reserve fulfilled market expectations today by holding interest rates steady. The decision was announced following a meeting of the Federal Open Market Committee, the central bank’s governing body.
“Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability,” the FOMC said in a statement. “In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 2 ¼ to 2 ½ percent.”
The Fed’s action was widely expected. While inflation has been sluggish, that has been balanced by recent economic growth, which has been stronger than expected. Market watchers recently put the odds against a rate hike at 97%, according to a Reuters report.
The Fed reiterated its intent to be “patient” when determining future rate moves.
“In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes,” the FOMC said.