To the surprise of no one, the Federal Open Market Committee decided today to keep its target for the federal funds rate at 1%.

In its policy statement, the Fed said it would keep rates on hold for a “considerable period”, but it also took note of some economic improvement, saying output was “expanding briskly” and that the “labor market appears to be improving modestly.”

The Fed also appears to have put aside its concern over deflation. “The probability of an unwelcome fall in inflation has diminished in recent months and now appears almost equal to that of a rise in inflation,” the statement said.

“However, with inflation quite low and resource use slack, the committee believes that policy accommodation can be maintained for a considerable period.”

The Fed’s next meeting of the policy-setting Open Market Committee is set for January 27 and 28.