Fed holds off on rate hike as inflation remains below target

In a statement released after its meeting on 27 July, the Federal Reserve, led by Janet Yellen (pictured), said it has decided to maintain the target range for interest rates at 0.25%-0.5%. It said: "The stance of monetary policy remains accommodative, thereby supporting further improvement in labour market conditions and a return to 2% inflation. "In light of the current shortfall of inflation from 2%, the committee will carefully monitor actual and expected progress toward its inflation goal. It expects economic conditions will evolve in a manner that will warrant only gradual incre...