At today's meeting of the Federal Open Market Committee, the Fed reaffirmed its prior view that the U.S. expansion is continuing at a "solid pace." Strong job growth and a low unemployment rate were boosting consumer spending, aided further by the decline in energy prices. The continuing recovery in capital spending was seen to be outpacing the "slow" housing market recovery.

Regarding price inflation, the Fed noted that lower energy prices had reduced inflation below its long-term objective of 2%. Moreover, longer-term inflation expectations remained stable.

The Fed expected that the moderate economic expansion would continue and that, following near-term pressures related to lower energy prices, inflation would rise to its 2% target.

As a result of these views, the Fed elected to leave its target for the federal funds rate at 0 to 1/4 percent.

The press release for today's FOMC meeting can be found here.

The backdrop to today's meeting was slightly faster M2 growth of 6.3% y/y and a pickup in growth of the monetary base to 8.4% y/y.

Haver's SURVEYS database contains the economic projections from the Federal Reserve Board.