Federal Reserve officials left their main interest rate unchanged and continued to pledge patience as they grappled with conflicting currents in the U.S. economy.
Central bankers, who’ve been slammed by President Donald Trump for not doing more to support the economy, took note of livelier growth while acknowledging weak inflation.
The committee repeated language from its previous meeting, saying it “will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate,’’ according to a statement Wednesday following a two-day gathering in Washington.
Policy makers gave no clear signal that their next move would be a hike or a cut, or that any adjustment should be expected at their next meeting in June. The unanimous 10-0 decision left the target range for the benchmark federal funds rate at 2.25 percent to 2.5 percent.
The Fed’s emphasis on subdued inflation prompted more buying of government debt as traders added to positioning for a rate cut. That drove the two-year Treasury yield down 4 basis points to 2.21 percent -- now 24 basis points below the benchmark overnight rate -- and the 10-year yield extended its slide below 2.5 percent.
The Fed’s latest statements add further support to the conviction among money market traders that the next move for the target policy rate will be down. Even before the meeting, Fed fund futures contracts were pricing in 26 basis points of easing by the end of the year, and now it’s 28.
The U.S. dollar extended its losses over the past week, sliding another 0.3 percent on the day.
Chairman Jerome Powell will hold a press conference at 2:30 p.m. Reporters are likely to prod him over whether upside and downside risks remain truly balanced in the eyes of policy makers.
Officials also adjusted one of the tools they use to keep the fed funds rate within its target range.
In addition to weighing economic developments, Fed officials have endured a steady drumbeat of criticism from Trump over past rate hikes. Powell and his colleagues have said repeatedly they’ll ignore the pressure and chart policy according to what best suits the longer-run prospects of the world’s largest economy.