CNBC's Steve Liesman reports on the Fed's decision to hold rates where they are. With CNBC's Brian Sullivan and the Fast Money traders, Brian Kelly, Mark Tepper, Karen Finerman and Guy Adami. The Federal Reserve held interest rates steady following its two-day meeting this week and indicated that no action is likely next year amid persistently low inflation.
Concluding a year that saw the central bank take down its benchmark rate three times, the Federal Open Market Committee on Wednesday met widely held expectations and kept the funds rate in a target range of 1.5%-1.75%.
In its statement explaining the decision, the committee indicated that monetary policy is likely to stay where it is for an unspecified time, though officials will continue to monitor conditions as they develop. The decision to keep rates unchanged was unanimous, following several dissents in recent meetings.
“The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective,” the statement said.
“The Committee will continue to monitor the implications of incoming information for the economic outlook, including global developments and muted inflation pressures, as it assesses the appropriate path of the target range for the federal funds rate,” the committee added.
The language is consistent with recent statements from Fed Chairman Jerome Powell and his colleagues, who have said policy is in “a good place” and likely to remain unchanged as long as current conditions persist.
Those sentiments also were reflected in the likely path forward.
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