The US economy is expanding “at a solid pace” with strong job gains, the Federal Reserve said on Wednesday, signaling that it remains on track to raise interest rates later this year.
Following a two-day policy meeting, the central bank maintained the view that energy-led weakness in inflation would dissipate, Reuters reported.
“Economic activity has been expanding at a solid pace,” the Fed was quoted as saying in a statement, upgrading its prior assessment of a “moderate pace” of growth.
“Labor market conditions have improved further, with strong job gains and a lower unemployment rate.”
The central bank repeated that it will be “patient” in deciding when to raise benchmark borrowing costs from zero, but said it expects inflation to rise gradually toward its goal over the “medium term”.
Policymakers will take “financial and international developments” into account when determining when to raise rates, the report said.
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