The central bank's decision to leave interest rates where they are is outlined in a dense statement that can be hard to decipher. Here, in everyday language, is a translation of the Fed's remarks. Read more
Federal funds rate
The interest rate at which banks lend money to one another overnight to meet loan reserve requirements. The federal funds rate is a tool used by the Federal Reserve to control the supply of available money and hence, inflation and other interest rates.
Raising the rate makes it more expensive to borrow. That lowers the supply of available money, which helps keep inflation in check. Lowering the rate has the opposite effect.