The US Federal Open Market Committee, which concluded its two-day monetary policy meeting, has left the target range for its federal funds rate unchanged at 0 to 0.25 per cent and says it will continue with its $US120 billion ($A164 billion) a month bond-buying program.
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The move by the US central bank is in line with expectations.
The Federal Reserve, which said the economy is strengthening despite concerns about the spread of the coronavirus, stressed that progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy.
But it dropped a sentence it had included after its previous meeting that said those vaccinations have reduced the spread of COVID-19.
It added that risks to the US economic outlook remain.
"The sectors most adversely affected by the pandemic have shown improvement but have not fully recovered," noted the central bank's post-meeting statement.
"Inflation has risen, largely reflecting transitory factors. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to US households and businesses."
Noting that there has been progress towards the central bank's goals on employment and inflation, the bank's statement said changes to policy with regard to monthly bond purchases could be on the way.
with AP
Australian Associated Press
