Updated from 2:12 p.m. EDT
Federal Open Market Committee on Tuesday maintained its benchmark
fed funds rate target at 1.75% and kept its balanced risk assessment on the economy.
Economists and analysts had been expecting the FOMC, the policymaking arm of the
Federal Reserve, to leave rates alone. The fed funds target rate still stands at its lowest level in about 40 years.
"The information that has become available since the last meeting of the Committee confirms that economic activity has been receiving considerable upward impetus from a marked swing in inventory investment," the FOMC said in a short statement. "Nonetheless, the degree of the strengthening in final demand over coming quarters, an essential element in sustained economic expansion, is still uncertain."
The members of the FOMC voted unanimously to leave the fed funds target at its current rate. The discount rate was kept at 1.25%.
"In these circumstances, although the stance of monetary policy is currently accommodative, the Committee believes that, for the foreseeable future, against the background of its long run goals of price stability and sustainable economic growth and of the information currently available, the risks are balanced with respect to the prospects for both goals," the statement indicated.