The Federal Reserve has kept its benchmark interest rate unchanged at near zero, described US economic growth as “moderate” after the winter slowdown.

According to the Federal Open Market Committee’s policy statement, economic data since April “suggest that economic activity has been expanding moderately after having changed little during the first quarter.”

About employment it said that the jobless rate has not moved much, job creation has picked up and other indicators suggest the falling slack in the employment market.

The FOMC for the other key base for policy, inflation said that very low level of price gains is related to the crash in oil and import prices, both “transitory” effects that should disappear, allowing prices to rise toward its target rate of about 2.0 per cent.

It also said that, “The Committee continues to monitor inflation developments closely.”

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