WASHINGTON (AP) – The Federal Reserve is keeping a key interest rate unchanged while pledging to closely monitor developments in the global economy and financial markets.
The Fed said Wednesday that economic growth has slowed since it raised rates from record lows in December. The changes in a statement it issued after its latest policy meeting signaled that the Fed could be prepared to slow future rate hikes if financial market losses and global weakness do not abate.
It repeated language age it used in December that it foresees gradual rate increases in the future. Some economists have said they now expect just two slight rate increases during 2016.
The policymakers left their benchmark rate unchanged in a range of 0.25 percent to 0.5 percent. Until December, they had kept that rate at record lows.
The Fed’s statement comes against a more perilous global backdrop. Since the Fed raised rates Dec. 16 from record lows, stock markets have plunged, oil prices have skidded and China’s leaders have struggled to manage a slowdown in the world’s second-biggest economy.