Fed Holds Steady On Rates, Acknowledges Weaker Economy

(RTTNews) - As expected, the Federal Reserve on Wednesday made no change to monetary policy in light of disappointing recent economic data.

"Economic activity appears to have slowed," the Federal Open Market Committee said in a statement released after its two-day meeting this week. "Growth in household spending has moderated, although households' real income has risen at a solid rate and consumer sentiment remains high."

The Federal Open Market Committee (FOMC) left its benchmark interest rate unchanged in a range of 0.25% to 0.50%.

Stubbornly low inflation and rough patch for the economy have kept the FOMC from raising interest rates since December, when rates were hiked for the first time in a decade.

Some economists expected clues regarding a possible June rate hike, but the Fed gave no clear signal on timing of next rate increase.

Unlike other recent meetings, no press conference by Fed Chairwoman Janet Yellen is scheduled to discuss the decision.

In its statement, the Fed acknowledged "labor market conditions have improved further even as growth in economic activity appears to have slowed."

The vote to hold steady was 9-1. Kansas City Fed President Esther George dissented for the second time in a row, wanting a modest rate hike.