Commenting on the decision to keep rates at a four-decade low, the FOMC pointed to the leveling of the upswing in inventory investment. In addition, growth in final demand appears to have moderated.
The FOMC said in a press release that it expects “the
rate of increase of final demand to pick up over coming
quarters, supported in part by robust underlying growth in
productivity, but the degree of the strengthening remains
The statement said risks were equally balanced between economic weakness and a flare-up in inflation, a stance unchanged from the last meeting on May 7, but economists said its overall downbeat tone indicated no rate increases were likely in the imminent future.
US interest rates have remained at this level since December 2001.