U.S. Federal Reserve Board Chair Jerome Powell speaks at a news conference following a two-day meeting of the Federal Open Market Committee on May 1, 2019, in Washington. (AP Photo/Patrick Semansky)

Fed keeps US monetary policy intact, upbeat on economy

WASHINGTON - The Federal Reserve left U.S. interest rates unchanged Wednesday as it offered a more upbeat view of the world's largest economy despite below-target inflation.
The Fed maintained its target range for the benchmark rate at 2.25 to 2.50 percent, it said in a statement issued after a two-day meeting of the policy-setting Federal Open Market Committee.

The decision was widely expected because the central bank, in the last FOMC meeting in March, foresaw no rate increases this year amid concerns about slowing global growth.

"In light of global economic and financial developments and muted inflation pressures, the committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes," the statement said.

Speaking at a news conference after the latest meeting, Fed Chairman Jerome Powell said, "Overall, the economy continues on a healthy path, and the committee believes that the current stance of policy is appropriate."

The Fed said the U.S. labor market remains strong and "economic activity rose at a solid rate." In a March statement, the Fed said "growth of economic activity has slowed from its solid rate in the fourth quarter" of 2018.

Inflation is running below the Fed's 2 percent target -- a development that would create a source of concern for the economy if it persists -- but Powell said recent low inflation readings may be transitory and declined to hint whether the bank will move to cut rates in an effort to spark growth and inflation.

"We don't see a strong case for moving (rates) in either direction," he said.

Powell dismissed political interference in the Fed's policy making, saying the central bank is a "nonpolitical institution."

"We don't think about short-term political considerations, we don't discuss them and we don't consider them in making our decisions one way or the other," he said.

On Tuesday, Trump urged the Fed to reduce interest rates by 1 percentage point and resume quantitative easing to stimulate growth.

Source: https://mainichi.jp/english/articles/20190502/p2g/00m/0bu/006000c