The U.S. Federal Reserve opted not to raise interest rates at its January meeting and gave no hint of changing course on its rate-hiking path ahead.
Amid substantial turmoil in financial markets, the Federal Open Market Committee statement issued Wednesday did say it was "closely monitoring global economic and financial developments," referring to the volatility that led most of Wall Street to dismiss the possibility of a rate hike this month.
Major stock averages sold off immediately after the statement as Wall Street examined Fed language for how hawkish the U.S. central bank will be through the rest of the year.
The statement noted that while economic growth is slow south of the border, labour conditions are improving and the persistently low level of inflation would change. Fed officials maintained their belief that the ongoing plunge in energy prices is merely "transitory" and will pass in the medium term.
The statement added the employment outlook "improved further even as economic growth slowed late last year." Fed officials believe the labour market has tightened though there is little indication of wage inflation.
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