The Federal Reserve has signalled it remains on course to raise short-term interest rates this year despite weaker overseas growth and slowing inflation.
The central bank held its key rate at 0 to 0.25 per cent in its first meeting of 2015 and said the US economy is expanding at a “solid” pace with strong gains in employment.
Amid falling energy prices, the Fed said it expects inflation to drop further in the near-term, but then rise back toward 2 per cent as the jobs market improves further. Falling energy prices “have boosted household spending power,” it said.
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