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 December 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.
“The Committee is closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook,” the policy statement reads.
The Committee will continue to monitor the labor market, inflation pressures as well as readings on financial and international developments in making its decision on when to raise rates next.
“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 longer run,” the statement reads. “However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.”
The Committee will hold its next meeting on March 15 and 16, which will be the next opportunity the Fed has to raise rates.