The Federal Reserve this afternoon announced that it is holding interest rates steady.
“Recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated,” the Federal Open Market Committee said in a statement. The FOMC’s vote to maintain interest rates where they are was 11 to 1.
“In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2%,” the FOMC said. “In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”
The FOMC said that it is strongly committed to supporting maximum employment and returning inflation to its 2% objective. It said that it will continue to monitor the implications of incoming information for the economic outlook and is prepared to raise or lower rates or continue to hold them steady as necessary.
