The Federal Reserve signalled it is getting more confident in the inflation outlook as it prepares for further increases in short-term interest rates in the coming months.
The US central bank said that price growth has moved close to its target and is likely to stay there in the medium term as it held short-term rates unchanged at 1.5 to 1.75 per cent.
Policymakers dropped language in previous post-meeting statements that said they were closely monitoring inflation. “Inflation on a 12-month basis is expected to run near the Committee’s symmetric 2 per cent objective over the medium term,” officials said, adding that the risks to the outlook were “roughly balanced”.