Fed keeps interest rates on hold amid 'favorable' outlook
"Our economic outlook remains a favorable one, despite global developments and ongoing risks," Fed Chair Jerome Powell said in a news conference following the decision. "We believe monetary policy is well positioned to serve the American people by supporting continued economic growth, a strong job market and inflation near our symetric 2% goal."
The decision by the U.S. central bank's rate-setting committee left the benchmark overnight lending rate in its current target range between 1.50% and 1.75%.
New economic projections showed a solid majority of 13 of 17 Fed policymakers foresee no change in interest rates until at least 2021. The other four saw only one rate hike next year.
Notably, no policymakers suggested lower rates would be appropriate next year, a sign the Fed feels it has engineered a "soft landing" after a volatile year in which recession risks rose, the U.S. bond yield curve inverted, and trade policy disrupted markets.
In the midst of an ongoing U.S.-China trade war, Fed policymakers said they would continue monitoring "global developments" in deciding whether interest rates need to change. They also said they would keep an eye on "muted inflation pressures," a reflection of concern that the pace of price increases has failed to hit the central bank's target.
