WASHINGTON - The US Federal Reserve on Wednesday kept the target range for the federal funds rate unchanged at 3.5-3.75 percent.
"Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little," said the Federal Open Market Committee (FOMC) in a statement.
Meanwhile, "inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy," the FOMC went on in the statement.
In support of the Fed's dual mandate, the committee "decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent," the statement said.
The FOMC reaffirmed "its policy of maintaining ample reserves in the banking system."
