Citing the uncertainty in the economy, the Federal Reserve today opted to maintain the target range for the federal funds rate at 4.25 to 4.50 per cent.

As officials concede growing concern over the US administration’s unsteady trade policy, for the third consecutive meeting the decision is to adopt a wait-and-see attitude.

The Federal Open Market Committee said: “Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace.”

The FOMC said the American unemployment rate has stabilised at a low level in recent months, and labour market conditions remain solid, but inflation remains somewhat elevated.

The committee seeks to achieve maximum employment and inflation at the rate of 2 per cent over the longer run.

“Uncertainty about the economic outlook has increased further,” the FOMC said. “The committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.”

In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the committee will assess incoming data, the evolving outlook and the balance of risks.

The Federal Reserve will continue reducing its holdings of treasury securities and agency debt and agency mortgage‑backed securities.

“The committee is strongly committed to supporting maximum employment and returning inflation to its 2 per cent objective,” the FOMC said.

It pledged to continue monitoring the implications of incoming information for the economic outlook, and is prepared to adjust its stance if risks emerge that could impede the attainment of its goals.