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 last meeting in September, according to the Federal Open Market Committee’s statement.
The Federal Reserve's dual objectives when deciding to move interest rates are maximum employment and inflation reaching its 2 percent objective.
"Information received since the Federal Open Market Committee met in September indicates that the labor market has continued to strengthen and growth of economic activity has picked up from the modest pace seen in the first half of the year," the statement read. "Inflation has increased somewhat since earlier this year but it is still below the Committee's 2 percent long-run objective."
The committee said it would continue to monitor labor market conditions, indicators of inflation pressures, and readings on financial and international developments when deciding the timing and size of future federal funds rate adjustments.
Even though the committee noted that there was more of a case to increase interest rates, it decided that it would wait for further evidence.
"The Committee judges that the case for an increase in the federal funds rate has continued to strengthen but decided, for the time being, to wait for some further evidence of continued progress toward its objectives," the statement said.
The committee will hold its next meeting on Dec. 13 and 14, which will be the next opportunity the Fed has to raise rates.
Published under: Federal Reserve