Fed keeps rates unchanged, signals faith in US economy

(From Reuters)

The Federal Reserve kept interest rates unchanged on Wednesday but signaled confidence in the U.S. economic outlook, leaving the door open to a hike in June.

U.S. Federal Reserve Chair Janet Yellen holds a press conference following the two-day Federal Open Market Committee (FOMC) policy meeting in Washington on March 16.

U.S. Federal Reserve Chair Janet Yellen holds a press conference following the two-day Federal Open Market Committee (FOMC) policy meeting in Washington on March 16.

The U.S. central bank’s policy-setting committee said the labor market had improved further despite a recent economic

slowdown and that it was keeping a close eye on inflation.

It added that global economic headwinds remained on its radar, but removed a specific reference from its last policy

statement to the risks they posed.

“The committee continues to closely monitor inflation indicators and global economic and financial developments,” the

Fed said in a statement following a two-day meeting.

It kept the target range for its overnight lending rate in a range of 0.25 percent to 0.50 percent. The Fed hiked rates in December for the first time in nearly a decade. Read more

 



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