The Federal Open Market Committee has decided to maintain current interest rates because key indicators of longer-term inflation are little changed since its June meeting.
The FOMC decided at its most recent meeting to maintain the target range for the fed funds rate at 1/4 to 1/2%. The committee noted household spending has been growing strongly, but business fixed investment remained soft.
Bloomberg reported the Federal Reserve confirmed being “patient” on interest rates means no increase before late April. Risks from overseas are largely offset by domestic strength.
In its latest meeting of the FOMC, the Fed said growth in economic activity has rebounded in recent months and noted that business fixed investment resumed its advance.
In a news release, Fed officials said economic activity expanded as a modest pace and business fixed investment advanced. The Fed also said it will keep the central bank’s $85 billion-per-month bond-buying program in place.
The FOMC said that it will continue buying securities at a pace of $85 billion a month and maintain a low range for the federal funds rate as long as unemployment remains above 6.5%
The FOMC said that since January the economy has returned to moderate economic growth following a pause late last year. The Fed added that it will continue buying securities at a pace of $85 billion a month.