Recent economic indicators suggest continued expansion at a solid pace, according to the Federal Reserve’s latest statement. The unemployment rate has stabilized at a low level, and labor market conditions remain strong. However, inflation is still somewhat elevated.
The Federal Open Market Committee (FOMC) aims for maximum employment and a 2 percent inflation rate over the long term. The Committee notes increased uncertainty about the economic outlook and acknowledges rising risks of higher unemployment and inflation.
To support its objectives, the FOMC decided to maintain the federal funds rate target range at 4-1/4 to 4-1/2 percent. Future adjustments will depend on incoming data, evolving economic conditions, and risk assessments. The Committee plans to continue reducing its holdings of Treasury securities and agency debt.
The FOMC remains committed to achieving maximum employment and returning inflation to its 2 percent goal. It will monitor incoming information closely to assess monetary policy implications. Adjustments will be made if necessary to meet the Committee’s goals.
Voting for this monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Neel Kashkari; Adriana D. Kugler; Alberto G. Musalem; and Christopher J. Waller, with Neel Kashkari voting as an alternate member.
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