The US Federal Reserve’s open market committee stuck overnight to the 0.75-1% target range for its federal funds rate.
In its statement issued this morning, the US central bank said: “The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labour market conditions and a sustained return to 2% inflation.”
The committee said it would maintain its policy of reinvesting principal payments from its holdings of agency debt & agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, “and it anticipates doing so until normalisation of the level of the federal funds rate is well under way. This policy, by keeping the committee’s holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.”
Link to full statement: Federal Reserve issues FOMC statement
Attribution: Bank release.