The Federal Reserve on Wednesday repeated its pledge to remain "patient" on raising interest rates amid unusually low inflation that could derail the U.S. economic recovery.
"Information received since the Federal Open Market Committee met in December suggests that economic activity has been expanding at a solid pace. Labor market conditions have improved further, with strong job gains and a lower unemployment rate," the Fed said at the conclusion of its two-day meeting Wednesday afternoon.
But even though the U.S. unemployment rate has dropped to lowest level since June of 2008, today's statement shows the Fed is unlikely to raise interest rates until at least June, but probably later.
"Based on its current assessment, the Committee judges that it can be patient in beginning to normalize the stance of monetary policy," they added.
That's because annual inflation has been anemic, holding at annual rate near 1 percent due to collapsing energy prices and a soaring U.S. dollar. Economists say consumers anticipating lower prices might put off big purchases, causing the economy to lose steam after a strong second half of 2014.
Policy makers say inflation will decline further in the near term, but "the Committee expects inflation to rise gradually toward 2 percent over the medium term as the labor market improves further and the transitory effects of lower energy prices and other factors dissipate."
There was no specific mention of economic headwinds elsewhere, including problems in the euro zone over Greece's debt.
The Fed decision was unanimous.
The fed funds rate has been at zero since the 2008 financial crisis sparked the worst recession in decades.
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May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.