In a news release, the Federal Reserve said it will maintain the current federal fund rate and continue bond purchases.
The statement said that information received since the Federal Open Market Committee met in May suggests that economic activity has been expanding at a moderate pace.
The Fed added that to support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month.
To support continued progress toward maximum employment and price stability, the Committee said it expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens.
In particular, the Committee decided to keep the target range for the federal funds rate at 0 to 0.25% and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2%, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee’s 2% longer-run goal, and longer-term inflation expectations continue to be well anchored.
To read the full statement click here.