Fed leaves key policy rate unchanged

WASHINGTON (AP) – The Federal Reserve is leaving its key interest rate unchanged and signaling that no rate hikes are likely in coming months, amid signs of renewed economic health but unusually low inflation.

The Fed left its benchmark rate – which influences many consumer and business loans – in a range of 2.25% to 2.5%. The central bank’s low-rate policy has helped boost stock prices and supported a steadily growing economy whose outlook has brightened since late last year.

The Fed did make a technical adjustment to trim the interest it pays banks on reserves to 2.35 percent as a way to keep its benchmark rate inside its approved range.

The decision Wednesday to make no change in the policy rate policy had been expected despite renewed pressure from President Donald Trump for the Fed to cut rates aggressively to help accelerate economic growth.

The Fed statement had a more upbeat view of the economy, saying that “economic activity rose at a solid rate.” In March, the Fed said that it appeared growth had slowed from the fourth quarter.