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The Federal Open Market Committee announced no changes in monetary policy activities or in the federal funds target rate – currently set at a range of 0 to 0.25 percent –at the close of its two-day meeting Wednesday.

As expected, the committee said the Fed will maintain its existing policy of reinvesting its principle payments from agency debt and rolling over maturing Treasury securities at auction. In its policy statement, it noted again that it believes the Fed can be "patient" in deciding when to begin normalizing its monetary policy stance.

NAFCU Director of Research and Chief Economist Curt Long pointed to the committee's assessment of economic conditions. "The committee sees the economy growing at a solid pace even though inflation has continued to decline amid falling energy prices," Long said. "It noted ongoing improvements in the labor market, with solid job gains and a lower unemployment rate."

Long added that the panel isn't likely to raise its historically low federal funds rate target until its mid-June meeting, "at the earliest."

This week's was the committee's second policy session held since the Fed ended its asset purchase program.

For more, see NAFCU's Macro Data Flash report.