NEW YORK - The US Federal Reserve on Wednesday kept the target range for the federal funds rate unchanged at 3.5 to 3.75 percent, as widely expected by the market.
The move marks the Fed's fifth monetary policy meeting in a row with a wait-and-see stance, while expectations for an interest rate hike have been building for the coming months.
The year-on-year growth rate of the US headline consumer price index dropped to 3.5 percent in June from 4.2 percent in May as oil prices plunged in the period.
Still, the United States continues to face elevated inflationary pressures in comparison with the Fed's 2 percent inflation target.
"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 Federal Open Market Committee said in a press release. "Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East."
