The Federal Open Market Committee, which sets the benchmark interest rate for bank lending, will not be raising that rate in the short term.

The current rate is set at between 0.25% and 0.5%. Big financial firms all took a hit on the stock market on the announcement.

According to a release from the Federal Reserve, "a range of recent indicators, including strong job gains, points to additional strengthening of the labor market."

"Inflation picked up in recent months; however, it continued to run below the Committee's 2% longer-run objective, partly reflecting declines in energy prices and in prices of non-energy imports," according to the statement on the decision to leave rates unchanged.

The good news is that household spending is growing at moderate rate, and continues to improve.

The labor market is also strengthening, the committee reports.

"However, global economic and financial developments continue to pose risks," they said.

The FOMC raised rates only once in 9 years, back in December.

Fed Chair Janet Yellen said after that the 2% target inflation rate the FOMC would like to see, is now expected some time next year.