The Federal Reserve today left the federal funds rate unchanged at 5.25%. "Economic growth has slowed over the course of the year, partly reflecting a cooling of the housing market," said a statement from the Federal Open Market Committee. "Going forward, the economy seems likely to expand at a moderate pace."
Pointing to recent elevated core inflation readings, the committee felt that "some inflation risks remain" but "the extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information," the statement said.
Leo Kamp, chief investment economist for TIAA-CREF, said the mention of slowed economic growth indicates the Fed will continue to hold interest rates steady. "At their last meeting, they talked about moderation in economic growth, so there's a marginal difference, but we have more confidence we'll remain on hold until perhaps midyear next year," he said.
The next FOMC meeting is scheduled for Dec. 12.