The US Federal Reserve left its benchmark interest rate unchanged Wednesday after a two-day meeting in Washington. The central bank pointed to a strengthening labour market and moderate economic growth, while inflation continues to remain below the Fed's target of 2 per cent, dpa reported. The Fed calibrates monetary policy toward the dual goals of maximum employment and price stability. The benchmark rate was hiked in December after seven years at an unprecedented near-zero range. Since raising its key rate to a target around 0.375 per cent, the Fed has pared back its expectations for when monetary policy will return to normal levels. The Fed said it "expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate."
