Fed Sees Moderating Economic Expansion and Inflation Pressures

The FOMC kept the fed funds rate at 5.25% today, as expected. The only differences in the last two meeting statements is a projection in today's that the "economy seems likely to expand at a moderate pace" and energy prices, instead of helping "to sustain inflation pressures" are now seen as helping to moderate them. This outlook on the economy and inflation suggests that the Fed has relaxed its rate tightening stance.

FOMC Policy Statement