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 noted that economic activity had been increasing at a moderate pace despite the risks posed by global economic and financial developments.
The release noted that inflation continued to run below FOMC objectives due to declines in energy prices and non-energy imports, but had picked up in recent months.
The Committee adjusted their economic projections, lowering the median federal funds rate estimates by 50 basis points in 2016 and 2017, 30 basis points in 2018, and 20 basis points in the long run. In addition, the committee altered their employment and GDP projections, revising their estimate of GDP growth down 20 basis points to 2.2 percent in 2016, and 10 basis points to 2.1 percent in 2017.
Unemployment projections were also revised from December, with estimates moving down 10 basis points to 4.6 percent in 2017, and 20 basis points to 4.5 percent in 2018.
Read the Fed statement.