The Federal Open Market Committee left the federal funds rate target at 0.25% to 0.50%, according to a statement released by the Fed Wednesday.
"The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives," according to the statement released by the Fed.
The decision was far from unanimous…with Cleveland Fed President Loretta J. Mester, and Boston Fed President Eric Rosengren joining Kansas City Fed President Esther George in dissenting in favor of a 25 basis point rate hike.
The FOMC said economic activity has increased in the second half from its sluggish first-half pace and the labor market keeps strengthening, with solid job gains despite a steady jobless rate.
"Market-based measures of inflation compensation remain low; most survey-based measures of longer-term inflation expectations are little changed, on balance, in recent months," the statement noted.
Inflation is expected to stay below target, rising to 2% over the medium term, and near-term risks to the outlook were termed "roughly balanced."
