Despite rumblings that the Federal Open Market Committee (FOMC) would increase interest rates at its monetary policy meeting today, the committee instead reaffirmed its current rates, stating that the 0 to .25 percent rate would remain in place.
According to the FOMC’s statement, this decision was made to “support continued progress toward maximum employment and price stability” and largely factored in energy prices, household spending and incomes, unemployment rates, inflation and other economic influencers.
Despite opting to continue with its current interest rates, the FOMC’s statement did recognize that increases in the future are possible.
“In determining how long to maintain this target range [0 to .25 percent], the Committee will assess progress–both realized and expected–toward its objectives of maximum employment and 2 percent inflation,” the statement read. “The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.”