US Federal Reserve leaves interest rates unchanged

The US Federal Reserve on Wednesday left interest rates unchanged after concluding a two-day policy meeting, in a move that met market expectations and reflected the central bank's patient approach regarding monetary policy changes. In support of the goals of fostering maximum employment and price stability, the Federal Open Market Committee (FOMC) decided to maintain the target range for the federal funds rate at 2.25 per cent to 2.5 per cent, the central bank said in a statement, Xinhua reported.

The FOMC, the Fed's monetary policymaking body, continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 per cent objective as the most likely outcomes, said the statement.

"In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes," it said.

In a separate statement, the Fed said it intends to conclude the reduction of its aggregate securities holdings at the end of September. The process, known as Balance Sheet Normalization, started in October 2017.

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The central bank intends to slow the reduction of its holdings of Treasury securities by reducing the cap on monthly redemptions from the current level of $30 billion to $15 billion beginning in May, according to the statement.