The Federal Reserve Open Market Committee (FOMC) decided to maintain the current target for the federal funds rate at 25-50 basis points, as the stance of monetary policy remains accommodative.
In a post meeting statement, the Committee again noted strong job gains and additional decline in labor force underutilization, as well as moderate increases in household spending, business fixed investment and housing.
Concern was expressed that net exports have softened and inventory investment has slowed. Inflation continues to run well below the 2 percent long-run objective, partly reflecting lower energy prices and prices of non-energy imports.
The statement also noted that the Committee is closely monitoring global economic and financial developments, and their implications for the labor market and inflation. The line in the December press release, stating that the risks to the Fed’s outlook were “balanced” was removed from today’s release.
Read the full FOMC statement.