the Federal Open Market Committee reaffirmed the current zero to quarter percent target range for the federal funds rate.

Recent global economic and financial developments are likely to put further downward pressure on inflation in the near term.

These developments may also restrain U.S. activity somewhat,

but if not led at this point to a significant change in the committee's outlook for the U.S. economy.

The committee continues to anticipate that the first increase in the federal funds rate will be appropriate when it is seen some further improvement in the labor market

and it's reasonably confident that inflation would move back to its 2% objective over the medium term.

I will note that the importance of the initial increase should not be overstated,

the stance of monetary policy would likely remain highly accommodative for quite some time.

after the initial increase in the federal funds rate, the committee continues to expect the moderate pace

of overall GDP growth, even though the restraint from net export is likely to persist for a time.

The labor market has shown further progress so far this year, the recovery from the great recession has advanced sufficiently far,

and domestic spending appears sufficiently robust,

that an argument can be made for a rise in interest rates at this time.

We discussed this possibility at our meeting.

However, in light of the heightened uncertainties abroad, and a slightly softer expected path for inflation,

the committee judged it appropriate to wait for more evidence, including some further improvement in the labor market

to bolster its confidence that inflation will rise to 2% in the medium term.