Federal Reserve declines to raise interest rates

WASHINGTON, July 29 (UPI) -- While the economy has seen moderate growth in recent months, the Federal Reserve on Wednesday declined to raise interest rates and gave no indication on when a future increase might happen.

The Fed was widely expected to raise interest rates, but the Federal Open Market Committee kept it between 0 percent and 0.25 percent.

In March, the FOMC indicated the rate is likely to increase by the end of the year. Janet Yellen, chair of the Federal Reserve Board, said her forecast didn't mean a rate hike would come after the June meeting, though she couldn't rule that out.

"Such an increase could be warranted at any later meeting depending on how the economy evolves," she said.

Wednesday's FOMC statement said growth in household spending as been moderate and there was been some growth in the housing sector. Fixed investment and net exports remained soft, though.

There have been solid job gains and declining unemployment, and the underutilization of labor resources has declined since earlier in the year. Meanwhile, inflation is expected to remain at a low level in the near term, but could rise toward 2 percent in the medium term.

"To support continued progress toward maximum employment and price stability, the committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate," the FOMC said. "In determining how long to maintain this target range, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation."