Fed Holds Interest Rates Steady

As expected by economists, the Federal Open Market Committee today voted unanimously to hold the target range for the federal funds rate steady at 1.5% to 1.75%. The FOMC’s decision comes amid moderating economic activity, though the committee noted that the labor market has remained strong and household spending is continuing to rise.

However, the committee noted that business fixed investments and exports continue to remain weak, and inflation continues to run below the Fed’s 2% target. The FOMC said it would continue to monitor incoming economic data, “including global developments and muted inflation pressures,” in determining future rate adjustments.