Fed Leaves Rates Unchanged, Says Inflation Close to Target

The decision to maintain the federal funds target range at 1.5% to 1.75% was a unanimous 8-0. This FOMC meeting won't be followed by a press conference.

The Fed's commentary is unlikely to change investor expectations that policy makers will raise interest rates for the second time this year when they reconvene in June.

Officials left unchanged their view that near-term risks to the economic outlook appeared "roughly balanced." That suggests policy makers are not ready to steepen dramatically the path they've projected for slowly raising rates.

The Fed lifted its benchmark rate three times last year — while also beginning to slowly trim its balance sheet. Officials indicated in March they expect a total of three or four hikes in 2018.

The FOMC's two-day meeting followed the release of data Monday that showed inflation measured by the central bank's preferred gauge had hit its 2% target after being below that goal for almost every month since April 2012.

Policy makers aim to keep inflation near target while ensuring maximum sustainable employment and preserving a U.S economic expansion that is now the second longest on record.

Year-on-year growth in the personal consumption expenditures price index reached 2% in March, up from 1.7% in February. The jump was driven more by year-ago price drops in telecoms and pharmaceuticals than by recent price gains.