Federal Reserve Leaves Interest Rates Unchanged

On Wednesday, the Federal Reserve’s Federal Open Market Committee (FOMC) voted to maintain the target range for the federal funds rate at 3.50–3.75%.

The Committee said recent indicators suggest economic activity has been expanding at a solid pace, while job gains have remained low on average and the unemployment rate has been little changed. Inflation remains elevated, partly reflecting higher global energy prices.

The FOMC said it continues to seek maximum employment and inflation at a 2.0% rate over the longer run, noting that developments in the Middle East are contributing to heightened uncertainty around the economic outlook.