January 28, 2016
Despite maintaining a generally “upbeat” view of the U.S. economy, the Federal Reserve left interest rates unchanged Wednesday in a 10-0 vote. Recent stock market turmoil and slowing economic growth provided sufficient caution for policymakers.
After enacting the first increase in nearly a decade last month, the benchmark short-term interest rate was held steady at between 0.25 percent and 0.5 percent. A six-paragraph policy statement, released after the Fed’s two-day meeting, revealed no hints at possible future changes of its return to “normalized” monetary policy.
The Dow Jones industrial average dropped about 170 points shortly after the Fed’s statement. Policymakers are slightly less optimistic about the U.S. economy than in December. The Fed’s next meeting is slated in March.