Fed keeps rates unchanged, no hints at lift-off timing

FXStreet (Córdoba) – The Federal Reserve decided by unanimous vote to keep interest rates unchanged at July’s meeting as widely expected but offered no hints at the timing of the lift-off in the statement.

The Fed left target range for the federal funds rate at 0-0.25% and said said a rate hike will be appropriate “when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term”.

The Fed noted that the labor market continued to improve, “with solid job gains and declining unemployment”. The FOMC continues to see the risks to the outlook for economic activity and the labor market as “nearly balanced”.

Regarding inflation, the Committee anticipates Inflation to remain near its recent low level in the near term, but expects inflation to rise gradually toward 2% over the medium term after transitory effects of falling energy and import prices dissipate.

The Federal Reserve decided by unanimous vote to keep interest rates unchanged at July’s meeting as widely expected but offered no hints at the timing of the lift-off in the statement.

(Market News Provided by FXstreet)