The Federal Reserve on Wednesday made no change to monetary policy, a month raising interest rates for the first time in nearly a decade.
In keeping the benchmark interest rate near 0.25 percent, the Federal Open Market Committee acknowledged economic weakness overseas, particularly China, is a threat to the U.S. recovery.
They also said US “economic growth slowed” since its last meeting in December, and that inflation remains stubbornly low.
However, there was no specific mention of heavy recent losses on Wall Street.
Stock markets tanked and crude oil prices plunged to 12-year lows in the wake of the Fed’s December vote to raise interest rates by a quarter percent.
Policy makers predict the economy will likely grow at a “moderate pace” moving forward.
Fed Vice Chair Stanley Fischer recently said he continues to see four rate hikes this year, but few analysts think the central bank is prepared to tighten that aggressively.
The labor economy “improved further even as economic growth slowed late last year,” but low inflation remains an issue for policy makers targeting 2% annual inflation.
“Inflation is expected to remain low in the near term, in part because of the further decline in energy prices, but rise to 2 percent over the medium term as the transitory effects of declines in energy and import prices dissipate and the labor market strengthens further,” the statement said.
The Fed’s unanimous decision was in line with market expectations.
The material has been provided by InstaForex Company – www.instaforex.com