Recent volatility has also helped support gold as a safe-haven asset, and any further weakness or uncertainty may further bolster the precious metals.
Additionally, the committee revealed that it “would be concerned” if there were signs that inflation was “running persistently above or below this objective.”
The policy is “in line with dovish expectations,” Kathy Jones, chief fixed income strategist at Charles Schwab, told CNBC. “If there’s anything to hold into, it’s the statement about inflation. That’s a relatively new indication of concern that maybe they’re missing that target over a longer period of time. That would argue for easier policy. That’s kind of a new perspective for them.”
Inflation is expected to remain low, in part due to declines in energy prices, but the Fed expects inflation to rise to 2% over the mid-term once labor markets strengthen.
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Max Chen contributed to this article.