Federal Reserve Decision: Rates held steady for the third consecutive time, but divergence intensifies.

The Federal Reserve's decision indicates that recent indicators suggest economic activity is expanding at a solid pace. Job growth has been generally weak, and the unemployment rate has changed little in recent months. Inflation remains high, partly reflecting recent increases in global energy prices. The Committee is committed to achieving maximum employment and maintaining inflation at 2 percent over the long term. Developments in the Middle East are increasing uncertainty about the economic outlook. The Committee closely monitors the risks to both ends of its dual mandate. To support these goals, the Committee decided to maintain the target range for the federal funds rate at 3.5 percent to 3.75 percent. In considering the magnitude and timing of any further adjustments to this target range, the Committee will carefully assess the latest data, changes in the outlook, and the balance of risks. The Committee remains firmly committed to supporting maximum employment and restoring inflation to its 2 percent goal. In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of newly acquired information for the economic outlook. The Committee is prepared to adjust the stance of monetary policy as necessary should risks arise that could hinder the achievement of its objectives. The Committee's assessment will take into account a wide range of information, including labor market conditions, inflation pressures and expectations, and developments in financial and international situations.