‘Uncertainty around the economic outlook has increased,’ the Fed said in a post-meeting statement.
The Federal Reserve left interest rates unchanged for the second straight meeting, keeping the benchmark policy rate between 4.25 percent and 4.5 percent in March.
Investors overwhelmingly telegraphed the U.S. central bank keeping its easing cycle on hold as the monetary authorities assess the progress on inflation and wait for further clarity from the new administration’s policy changes.
Recent data suggest that economic activity is still expanding, and the labor market remains solid.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty around the economic outlook has increased. The Committee is attentive to the risks to both sides of its dual mandate,” the rate-setting Federal Open Market Committee (FOMC) said in a statement.
The Fed maintains a dual mandate of full employment and price stability.
By Andrew Moran
