This Week In The Economy: Federal Reserve Remains On Hold, Sees Bumpy Road To Achieving Inflation Objective

Welcome to a regular snapshot review of U.S. and international economic news that aims to 1) provide a window into the challenges and decisions facing businesses today, 2) determine the direction of economic policy — such as the speed at which central banks decide to raise interest rates, and 3) assess what the impact will be for consumers.

Federal Reserve Leaves Rates Unchanged, Ups Growth and Inflation Forecasts

The Federal Reserve’s Federal Open Market Committee met this week and voted to leave its high interest rate policy in place, while officials also revised upwards their forecasts for economic growth and inflation this year.

The FOMC’s statement noted that the risks to achieving its employment and inflation goals “are moving into better balance,” although the economic outlook remains uncertain, and the central bank continues to be “highly attentive” to inflation risks.