The Federal Reserve Open Market Committee met and decided to maintain the current rates, while adding that it is keeping its eye on current economic conditions and may make cuts in the near future.
In a statement, FOPMC reported that the labor market remains strong and that economic activity is rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although growth of household spending appears to have picked up from earlier in the year, indicators of business fixed investment have been soft.
The statement added that it “seeks to foster maximum employment and price stability. In support of these goals, the committee decided to maintain the target range for the federal funds rate at 2.25% to 2.5% percent. The committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the committee’s symmetric 2% objective as the most likely outcomes, but uncertainties about this outlook have increased.
“In light of these uncertainties and muted inflation pressures, the committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective.”
The committee’s statement said it would continue to monitor economic conditions with regard to determining the federal funds rates.