The U.S. Federal Reserve held interest rates steady at its meeting this week and made minor changes to its post-meeting statement to reflect what appears to be a stronger commitment to nudge up inflation.
Meeting market expectations, the central bank’s Federal Open Market Committee (FOMC) said Wednesday it will hold its benchmark funds rate between 1.5% to 1.75%, where it has been since the latter part of last year.
It was the second straight meeting at which the American central bank kept rates intact following three consecutive reductions in 2019. The rate sets the standard for what banks charge each other for overnight lending, but also is used as a benchmark for much consumer debt.
Also, pretty much intact was the post-meeting statement, save for what could be interpreted as a bit more resolution toward raising what has been a lackluster pace of inflation. The committee adjusted the language to reflect that policy is geared toward “inflation returning to the Committee’s symmetric 2% objective.”