FOMC held the funds rate at 1.25% to 1.50% on...>

FED: FOMC held the funds rate at 1.25% to 1.50% on 9-0 vote, but 

acknowledged some pickup in inflation recently despite it remaining 

below 2%. 

- The statement says that "inflation on a 12-month basis is 

expected to move up this year", a change from the language in December 

that said inflation is expected to "remain somewhat below 2 percent in 

the near term." In both cases, though, they say inflation will stabilize 

around 2% in the medium term.

- The statement also said market-based measures of inflation compensation 

"have increased in recent months but remain low", rather than just saying they 

"remain low." 

- The FOMC still expect conditions to warrant "further gradual rate 

increases," adding the word "further."

- Employment, household spending, business fixed investment growth 

was seen as "solid" while the unemployment rate has stayed low.