WASHINGTON (Alliance News) – The US Federal Reserve left its benchmark interest rate unchanged Wednesday after a two-day meeting in Washington.
The central bank pointed to a strengthening labour market and moderate economic growth, while inflation continues to remain below the Fed’s target of 2%.
The Fed calibrates monetary policy toward the dual goals of maximum employment and price stability.
The benchmark rate was hiked in December after seven years at an unprecedented near-zero range.
Since raising its key rate to a target around 0.375%, the Fed has pared back its expectations for when monetary policy will return to normal levels.
The Fed said it “expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate.”