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 March 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.
While the committee noted improvement in the labor market, they also expressed concern over low inflation.
"A range of recent indicators, including strong job gains, points to additional strengthening of the labor market," the committee said. "Inflation has continued to run below the Committee’s 2 percent longer-fun objective."
"In light of the current shortfall of inflation from 2 percent, the Committee will carefully monitor actual and expected progress toward its inflation goal," the minutes read. "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 it would continue to monitor global economic and financial developments.
The committee will hold its next meeting on June 14 and 15, which will be the next opportunity the Fed has to raise rates.