As expected, the Federal Reserve held interest rates steady today. 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.”
Many market watchers predicted that the Fed would also abandon its plan to hike rates twice this year and instead announce plans to keep rates steady through 2019. However, while the FOMC said it would exercise patience in determining when to raise rates, it steered clear of committing to hold off on rate hikes this year.
“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 sustained economic expansion, the committee said.