The Federal Reserve has taken a decision to hold the rates of interest steady after a meeting this week which lasted for two days and had indicated that there was no action that had been likely in the coming year as there is going to be low levels of inflation that is going to persist.
Giving a conclusion to a year which had seen the Fed take the benchmark rates thrice, it said after the meeting that the funds rate are going to be kept in the range beginning from 1.5% till 1.75%.
The statement they gave included an explanation for this decision. They have indicated that there is going to be no change in the monetary policy for a time that is unspecified however the officials are going to continuously monitor the development of the conditions. The decision was unanimously made to keep the rates unchanged after in the recent meetings there had been a lot of dissents.
The statement said that they had judged the monetary policy’s current stance to be appropriate for supporting an expansion in the economic activity which is sustained and the strong conditions for labor and market and the inflation being in and around the 2% objective of the Federal Committee.
It further added that the committee is going to monitor the implications which the economic outlook’s incoming information has which includes the developments around the globe and the inflation pressures which are usually muted as they assess a path that is appropriate for the range of target for the funds rate.
The statements coming out of the chairman and his other colleagues have been consistently pointing towards the policy being in a good place and that there was no requirement of a change.