Recent data indicates that economic growth in the United States slowed during the first half of 2025, with net exports continuing to contribute to fluctuations in the figures. Despite this moderation, the unemployment rate remains low and labor market conditions are reported as solid. Inflation continues to be somewhat elevated.

The Federal Open Market Committee (FOMC) announced it will keep the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. The committee stated, "The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate."

In support of its objectives, FOMC members confirmed their commitment: "In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective."

The statement also emphasized ongoing monitoring: "In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments."

Voting in favor were Jerome H. Powell (Chair), John C. Williams (Vice Chair), Michael S. Barr, Susan M. Collins, Lisa D. Cook, Austan D. Goolsbee, Philip N. Jefferson, Alberto G. Musalem, and Jeffrey R. Schmid. Michelle W. Bowman and Christopher J. Waller voted against maintaining rates at current levels; they preferred lowering them by a quarter percentage point at this meeting. Adriana D. Kugler was absent.

For further information or media inquiries regarding this announcement from the Board Of Governors Of The Federal Reserve System, contact details have been provided by officials.