FXstreet.com (Barcelona) - The Federal Reserve's Monetary Policy Committee has decided to maintain interest rates on hold at 0.25%, as widely expected to boost economic recovery.
On its official statement the FOMC stated that US economic activity has finally picked up. Conditions in financial markets have improved further, and activity in the housing sector has increased.
Talking about the future, the committee has been quite clear: The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.
Worries about inflation have also smoothed. With substantial resource slack likely to continue to dampen cost pressures and with longer-term inflation expectations stable, the Committee expects that inflation will remain subdued for some time.