No surprise from the Federal Reserve on Tuesday. The Federal Open Market Committee decided to leave interest rates unchanged.

In a statement, policy makers say they made the decision because “the economy, bolstered by a marked swing in inventory investment, is expanding at a significant pace.”
The decision follows 11 consecutive rate reductions made last year by the central bank, keeping the federal funds rate (the interest that banks charge each other on overnight loans) at 1.75%, the lowest level in about 40 years. The largely symbolic discount rate was also left unchanged at 1.25%.
While the Fed was upbeat about the future of the economy, they are still cautious, saying, “the degree of the strengthening in final demand over coming quarters, an essential element in sustained economic expansion, is still uncertain.”
The committee is scheduled to meet again in May and June, and many analysts believe that if the U.S. economy continues to improve, the board may make its first increase in interest rates in two years.