Investing.com – The U.S. Federal Reserve announced that it had kept its benchmark interest rate unchanged on Tuesday.
The bank said it was maintaining the benchmark interest rate at 0.25%, in a widely expected move.
In its statement, the Federal Open Market Committee described the economic recovery as being weaker-than-expected, saying, “The pace of recovery in output and employment has slowed in recent months. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit."
The statement also said that the FOMC “will maintain the target range for the federal funds rate at 0.0% to 0.25% for an extended period”, while adding that the committee “will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery”.
Following the announcement, the U.S. dollar was down against the euro, with EUR/USD gaining 0.21% to hit 1.3294.
The bank said it was maintaining the benchmark interest rate at 0.25%, in a widely expected move.
In its statement, the Federal Open Market Committee described the economic recovery as being weaker-than-expected, saying, “The pace of recovery in output and employment has slowed in recent months. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit."
The statement also said that the FOMC “will maintain the target range for the federal funds rate at 0.0% to 0.25% for an extended period”, while adding that the committee “will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery”.
Following the announcement, the U.S. dollar was down against the euro, with EUR/USD gaining 0.21% to hit 1.3294.