U.S. Fed leaves interest rates on hold

The U.S. Federal Reserve opted not to raise interest rates during its policy meeting this week and pledged that future moves will be done patiently and with an eye toward how economic conditions unfold.

The central bank voted unanimously yesterday to hold its policy rate in a range between 2.25% and 2.5%.

In a move that represented a divergence from policy of the past several years, the Fed dropped language that more rate hikes likely would be warranted – "further gradual increases," as stated after the December meeting – and said it was adopting a more cautious approach.

"In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes," CNBC cited the statement as saying.