The Federal Reserve kept interest rates unchanged today but signaled confidence in the U.S. economic outlook, leaving the door open to a hike in June.
Reuters reports the U.S. central bank’s policy-setting committee says the labor market had improved further despite a recent economic slowdown and that it was keeping a close eye on inflation.
It added that global economic headwinds remained on its radar, but it removed a specific reference from its last policy statement to the risks they posed.
“The committee continues to closely monitor inflation indicators and global economic and financial developments,” the Fed says in a statement following a two-day meeting.
It kept the target range for its overnight lending rate in a range of .25% to .50%. The Fed hiked rates in December for the first time in nearly a decade.
For the third consecutive meeting, it did not include any mention of the balance of risks to the economy.
However, the Fed noted that while growth in household spending has been moderated, households’ real income had risen at a “solid rate” and consumer sentiment remained high.
