In a statement the Fed acknowledged the labor market continued to improve while inflation continued to run below the Committee's longer-run objective, partly reflecting declines in energy prices and in prices of non-energy imports.
“The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term”, the Fed said.
The Fed commented it was "monitoring developments abroad," as it highlighted that “recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near-term”.
FOMC economic projections
Economic projections released today showed the Fed said 13 out of 17 officials would like a first rate hike in 2015 compared with previous 15.
Meanwhile, the median projection for rates at the end of 2015 dropped to 0.375% from 0.625% in June. To 1.375% at the end of 2016 from 1.625% and to 2.625% at the end of 2017 from 2.875%. In the long-term the Fed projected the fed funds rate will reach 3.5%, down from 3.75% estimated in June.
Investors now await Fed Chair Janet Yellen's press conference at 18:30GMT.
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