The Federal Reserve unanimously decided not to raise interest rates following the Federal Open Market Committee (FOMC) meeting. Rates will remain unchanged at a range of 0.75 to 1.00 percent. In addition, their reinvestment policy and $4.5 trillion balance sheet will virtually remain untouched. A decline in personal consumption expenditures (PCE) in March and low inflation was noted. Continued growth in the jobs market, albeit slow pace, coupled with increased business investment in 1Q and relatively stable global affairs, all left the Fed showing optimism.
Keeping interest rates low will continue to encourage borrowing and lending, tools to aid in progressing economic growth. With increased working adults, consumer prices and inflation should continually rise, eventually helping the nation reach the standard 3% target; it had come closest in 2011 and has failed to reach since the recession.