As expected by most market observers, the U.S. Federal Open Market Committee decided Tuesday to keep its target for the federal funds rate unchanged at 1.25%.

The odd thing about the decision was not so much the rate decision, but the fact that the Fed declined to declare whether it is holding a tightening bias, an easing bias, or sees the risks in balance. It suggested that circumstances were simply too uncertain to allow for such a determination.

“In light of the unusually large uncertainties clouding the geopolitical situation in the short run and their apparent effects on economic decisionmaking, the Committee does not believe it can usefully characterize the current balance of risks with respect to the prospects for its long-run goals of price stability and sustainable economic growth. Rather, the Committee decided to refrain from making that determination until some of those uncertainties abate. In the current circumstances, heightened surveillance is particularly informative,” it said.

The Fed also noted that incoming economic data since the January meeting have been mixed, but that recent labour market reports have proven disappointing.

“However, the hesitancy of the economic expansion appears to owe importantly to oil price premiums and other aspects of geopolitical uncertainties. The Committee believes that as those uncertainties lift, as most analysts expect, the accommodative stance of monetary policy, coupled with ongoing growth in productivity, will provide support to economic activity sufficient to engender an improving economic climate over time,” it said.