WASHINGTON (Oct. 28, 2015) — The Federal Open Market Committee (FOMC) of the Federal Reserve has chosen to keep a key interest rate at 0 to 0.25 percent, though it reserved the right to raise that rate at its next meeting before the end of the year.
Keeping the federal funds rate — the rate at which banks lend to other banks — at near zero is the best policy for supporting continued progress toward maximum employment and price stability, the FOMC said in a statement after its Oct. 28 meeting.
“In determining whether it will be appropriate to raise the target range at its next meeting, the committee will assess progress — both realized and expected — toward its objectives of maximum employment and 2-percent inflation,” the FOMC said.
This continuing assessment will measure labor market conditions, indications of inflation pressures and inflation expectations, and readings on financial and international developments, the committee said.
The federal funds rate has been at near zero since 2006.
In assessing the current state of the U.S. economy, the FOMC said economic activity has expanded moderately since its last meeting Sept. 17.
Household spending and business investment have increased solidly, it said, but the pace of job growth has slowed.