Officials at the Federal Reserve held off from raising borrowing costs and scaled back forecasts for how high interest rates will rise this year, citing the potential impact from weaker global growth and financial-market turmoil on the U.S. economy.
The Federal Open Market Committee kept the target range for the benchmark federal funds rate at 0.25 percent to 0.5 percent, the central bank said in a statement Wednesday following a two-day meeting in Washington. The median of policy makers’ updated quarterly projections saw the rate at 0.875 percent at the end of 2016, implying two quarter-point increases this year, down from four forecast in December.
Kansas City Fed President Esther George dissented from the decision, preferring a quarter-point rate increase.
“April remains a live meeting,” Yellen said when asked about the timing of the next rate move. “There will be additional data on the labor market, and on various factors that pertain to inflation. So that’s certainly a live possibility.”
Read more: Bloomberg