WASHINGTON (Jan. 29, 2015) — The Federal Reserve will keep a crucial interest rate at zero to 0.25 percent to support continued progress toward maximum employment and price stability, according to the Fed's Federal Open Market Committee (FOMC).
The federal funds rate — the interest rate at which banks lend to other banks — has been near zero since year-end 2008, soon after the recession began.
“In determining how long to maintain this target range, the committee will assess progress — both realized and expected — toward its objectives of maximum employment and 2-percent inflation,” the FOMC said in a Jan. 28 statement.
“This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments,” it said.
The FOMC said it expected economic activity to continue to grow moderately, with labor market indicators continuing to move toward desired levels.