REUTERS
The Federal Open Market Committee has maintained its key interest rate on federal funds to credit at a record low - 0-0.25% per annum, according to the Federal Reserve press-release.
"Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term," the U.S. regulator reported in its statement issued after a meeting on September 16-17.
Another factor that influenced the Fed's decision is inflation that "has continued to run below the Committee's longer-run objective, partly reflecting declines in energy prices and in prices of non-energy imports," the statement reads.
Information received since the Federal Open Market Committee met in July suggests that economic activity is expanding at a moderate pace, the report says.
Household spending and business fixed investment have been increasing moderately, and the housing sector has improved further; however, net exports have been soft.
The report emphasizes that in order to support continued progress toward maximum employment and price stability, the Committee reaffirmed its view that the current 0 to 0.25% target range for the federal funds rate remains appropriate.
This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments, according to the statement.
"In determining how long to maintain this target range, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2% inflation," said in the statement.
Read alsoGoldman sees 15 years of weak crude as $20 U.S oil loomsAs UNIAN reported earlier, a regular two-day meeting of the U.S. Federal Reserve started on September 16, during which a decision on key fed funds rate rise was expected to be made. The Federal Reserve has maintained its fed funds rate at the current level since December 2008. The last hike in the rate took place on June 29, 2006. During 2007-2008, the Federal Reserve had been gradually lowering its rate until it reached its lowest level in December 2008.
Analysts expected that the Federal Reserve's decision to raise the federal funds rate would have been made in September.