The Federal Reserve is monitoring volatility in financial markets and developments in overseas economies as it left interest rates unchanged at 0.25-0.5 per cent following weeks of turmoil in equities and plunging commodity prices.
The central bank said it was assessing what the gyrations around the world meant for the risks facing the US economy, leaving its options open as traders bet policymakers will leave rates unchanged until the second half of the year.
The Fed pushed through a landmark interest rate increase in December despite worries within its policymaking committee about stubbornly low inflation.
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