(RTTNews) - Following a regularly scheduled meeting, the Federal Open Market Committee, the policy-making arm of the U.S. central bank, announced that it has decided to leave its target for the federal funds rate at 2%.

This halted a series of rate cuts that began late last summer and took the Fed’s key rate from 5.25% last September to its current level of 2%. The current mark is the lowest level since November of 2004.

The decision to leave the benchmark rate unchanged was widely expected by the market. Despite continued weakness in the economy, the Fed has been under increased pressure lately to take a more hawkish stance in the face of rising inflation pressure.

In the statement that accompanied the decision, the Fed stated, “Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased.”

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Posted in Categories: Economy, Releases, USA.

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