Although information suggests economic activity continues to “pick up,” the Federal Open Market Committee said yesterday it will keep “the target range for the federal funds rate at 0% to 0.25% and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.”

Substantial resource slack will “dampen cost pressures and with longer-term inflation expectations stable, the committee expects that inflation will remain subdued for some time,” the FOMC said.

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