美聯準

Fed stays the course on interest rates as outlook improves

The Federal Reserve signalled it remains on course for further increases in short-term interest rates this year as inflation heads back towards target, even as it avoided giving strong indications on the timing of the next move.

The US central bank’s Federal Open Market Committee left the federal funds target range at 0.5 per cent to 0.75 per cent in a unanimous decision, following a quarter-point increase at the prior meeting in December.

The unchanged move was as expected by markets and analysts. In its post-meeting statement the US central bank flagged up improvements in consumer and business sentiment and said it expected inflation to rise to its 2 per cent target as it makes further, gradual adjustments to interest rates.

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