Fed Leaves Key Interest Rate Alone
The Federal Reserve is leaving its benchmark interest rate unchanged; the move is designed to encourage recently robust job creation to continue.
The decision means tax-payers (and radio listeners) will likely avoid paying higher interest rates on their mortgages, car payments and other loans.
The influential federal funds rate, or the interest rate banks charge one another for overnight lending, will remain at a target range of 0.25 to 0.5 percent. The Fed raises the interest rate to head off rising price inflation by slowing the pace of job market growth. The last time the Fed raised the federal funds rate was in December, the first time since the 2008 financial crisis.
“Economic activity has been expanding at a moderate pace,” with household spending gaining amid “soft” company investment and net exports, the Fed said. While inflation has “picked up in recent months,” market-based measures of inflation compensation are still low, the central bank said.