The US Federal Reserve has held its main interest rate steady at 5.25% for the sixth straight meeting. The decision was widely expected.
In a statement, it said it remained concerned on inflation, but downgraded its assessment of current economic conditions and left its future policy options open.
The Fed statement dropped a reference that had been contained in its last policy announcement to the possibility of further 'firming' of monetary policy.
In addition, the central bank offered a nod to recent signs suggesting the economy is moving ahead only slowly.
'Recent indicators have been mixed and the adjustment in the housing sector is ongoing,' the Fed said. 'Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters.'
Prices for US stocks and government bonds rose, while the dollar fell, as traders in financial markets saw the Fed's shifts in language opening the door to possible rate cuts later in the year.
