The policy making arm of the Federal Reserve is leaving the federal funds rate at a quarter of a percentage point, unchanged from the rate decided upon at the January meeting, according to the Federal Open Market Committee statement.
In keeping with the Federal Reserve’s dual objectives of maximum employment and inflation reaching its 2 percent objective, the committee has decided to not raise the federal funds rate and keep it steady at a quarter of a percent.
"A range of recent indicators, including strong job gains, points to additional strengthening of the labor market," the committee said. "Inflation picked up in recent months; however, it continued to run below the Committee’s 2 percent longer-run objective, partly reflecting declines in energy prices and in prices of non-energy imports."
The committee said that global economic and financial developments continue to pose risks and maintained that increases in the federal funds rate would remain gradual.
"The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the long run," the committee said.
The Committee will hold its next meeting on April 26 and 27, which will be the next opportunity the Fed has to raise rates.