As expected, the Federal Open Market Committee (FOMC) decided today not to raise rates. Only one member, Esther George of the Kansas City Fed, dissented. She preferred to raise the target range to 1/2 to 3/4 percent. The FOMC noted that “business fixed investment and net exports have been soft” and that “global economic and financial developments continue to pose risks.” Also:
In light of the current shortfall of inflation from 2 percent, the Committee will carefully monitor actual and expected progress toward its inflation goal. The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.
Fed and FOMC Chairman Janet Yellen’s press conference begins at 2:30PM Eastern Time this afternoon. You can watch it online by clicking here, and follow the transcript by clicking here.