The Federal Reserve demurred today, opting to leave interest rates near zero while continuing to monitor employment and inflation data.
“To support continued progress toward maximum employment and price stability, the committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate,” the Federal Open Market Committee (FOMC) announced in a 2 p.m. statement.
The decision was eagerly anticipated on Wall Street, where markets moved slowly most of the day. Analysts were split on whether the Fed would raise rates. Fed Chairwoman Janet Yellen had signaled that a rate hike would come before the end of the year.
“Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term,” the Fed statement said.
Read the full statement here.
The Fed’s policy-making committee, the FOMC met for two days to discuss rate policy. The Fed still plans to raise rates this year, the agency said in new economic projections also released today.