Federal Reserve keeps interest rates unchanged

The US Federal Reserve kept interest rates unchanged, Report informs, citing the Federal Reserve's Federal Open Market Committee, FOMC, statement.

The committee decided to maintain the target range for the federal funds rate at 3.5%-3.75%, saying the move supports the Federal Reserve's dual mandate. The committee also said it would continue its policy of maintaining ample reserves in the banking system.

According to the statement, economic activity is expanding at a solid pace despite elevated uncertainty partly linked to the conflict in the Middle East. The Fed said productivity growth and capital investment remain strong, while job gains have kept pace with the workforce and the unemployment rate has changed little.

The FOMC said inflation remains elevated relative to its 2% goal, partly reflecting supply shocks that have driven price increases in certain sectors, including energy.

The decision was approved by a 9-3 vote. Beth M. Hammack, Neel Kashkari and Lorie K. Logan voted against the action, preferring to raise the target range for the federal funds rate by 0.25 percentage points at the meeting.