The U.S. Federal Reserve kept its benchmark interest rate unchanged at 3.50% to 3.75%, a decision widely expected by financial markets. The Federal Open Market Committee (FOMC) said it is continuing to balance elevated inflation with a strong labor market.
According to a Federal Reserve news release, the decision was approved by a 9-3 vote. The central bank also decided to continue its policy of maintaining ample reserves in the banking system.
The committee said the U.S. economy continues to grow at a solid pace, although uncertainty remains high, partly because of the conflict in the Middle East.
It also said productivity and business investment remain strong, while job growth has kept pace with the expanding workforce and the unemployment rate has changed little.
The FOMC said inflation remains above its 2% target, partly because supply disruptions have increased prices in some sectors, including energy.
The committee reaffirmed its commitment to restoring price stability and bringing inflation back under control.
Three Federal Reserve officials, Beth M. Hammack, Neel Kashkari and Lorie K. Logan, dissented from the decision. They favored raising the benchmark interest rate by a quarter of a percentage point at this meeting.
