Recent indicators suggest that economic activity in the United States has continued to expand at a solid pace, despite fluctuations in net exports. The unemployment rate remains low, and labor market conditions are stable. However, inflation is still somewhat elevated.

The Federal Reserve's Federal Open Market Committee (FOMC) aims to achieve maximum employment and maintain inflation at 2 percent over the long term. Although uncertainty about the economic outlook has decreased, it remains high. The Committee is mindful of risks affecting its dual mandate.

To support these goals, the FOMC decided to keep the target range for the federal funds rate between 4-1/4 and 4-1/2 percent. In determining future adjustments to this target range, the Committee will carefully evaluate incoming data, evolving economic conditions, and risk balance. Additionally, the Committee will continue reducing its holdings of Treasury securities and agency debt and mortgage-backed securities. It remains committed to supporting maximum employment and bringing inflation back to its 2 percent objective.

The Committee will monitor incoming information for implications on the economic outlook when assessing monetary policy stance. If risks arise that could hinder achieving its goals, the Committee is prepared to adjust monetary policy accordingly. Assessments will consider various factors such as labor market conditions, inflation pressures and expectations, as well as financial and international developments.

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, Adriana D. Kugler, Alberto G. Musalem, Jeffrey R. Schmid, and Christopher J. Waller.

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