Federal Reserve decides to hold interest rates steady
The Federal Reserve announced Wednesday it will aim to keep interest rates to a target between 0.25 and 0.5 percent through March. The Fed turned heads in December by finally hiking rates off the 0-to-0.25 percent floor; the first time they had risen in nearly a decade.
Recent signals for the future of the economic recovery have been decidedly mixed, and the Fed admitted its long-term inflation target of two percent still appears to be a long way off. The statement continued the Fed's habit of assuring observers that the increase in interest rates will be slow and gradual. But it also suggested most of the Fed's decision-making members feel the forces holding down inflation, such as oil prices, are temporary.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.
Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.
