Fed FOMC statement keeps rates unchanged, signals steady policy

The Federal Open Market Committee voted 12-0 to approve the following statement.

To support the Fed's dual mandate, the committee decided to keep the target range for the federal funds rate unchanged at 3.5% to 3.75%. The committee reaffirmed its policy of maintaining ample reserve levels in the banking system.

Despite a degree of uncertainty, partly due to the conflict in the Middle East, economic activity continues to expand at a solid pace. Productivity growth and capital investment have been strong. Employment growth has kept pace with labor-force growth, and the unemployment rate has changed little.

Inflation remains above the committee's 2% objective, in part because supply shocks have pushed up prices in some areas, including energy. The committee will remain committed to achieving price stability.