Full text of the Federal Reserve's decision: Maintaining interest rates unchanged, focusing on dual mandate risks
The full text of the Federal Reserve's decision stated that it will maintain interest rates unchanged and focus on inflation and employment risks. Economic activity in the United States is stable and growing, with employment growth slowing but still at low levels, and inflation easing but still relatively high. The committee decided to keep the federal funds rate target range at 5.25%-5.50%. The committee will continue to reduce bond holdings and is committed to restoring inflation to the 2% target. The committee will assess the monetary policy stance based on new information to achieve its goals. Many members of the committee supported this monetary policy action
The Federal Reserve has maintained the target range for the federal funds rate at 5.25%-5.50% for the eighth consecutive time, reiterating that it will not cut interest rates until it has greater confidence in inflation, indicating that the committee will focus on both inflation and employment risks.
Full Text of Interest Rate Decision
Recent indicators suggest that economic activity continues to expand at a solid pace. Job growth has slowed, the unemployment rate has risen slightly but remains low. In the past year, inflation has eased somewhat but remains somewhat elevated. In recent months, the committee has made further progress in achieving the 2% inflation target.
The committee is committed to achieving maximum employment and a 2% inflation rate over the long term. The committee believes that the risks to achieving its employment and inflation goals are gradually becoming balanced. Economic outlook is uncertain, and the committee is monitoring risks to its dual mandate.
To support its goals, the committee has decided to maintain the target range for the federal funds rate at 5.25%-5.50%. When considering any adjustments to the target range for the federal funds rate, the committee will carefully assess new data, evolving outlook, and the balance of risks. The committee believes that it is not appropriate to lower the target range unless there is increased confidence that inflation will continue to reach the 2% target. In addition, the committee will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities. The committee is firmly committed to returning inflation to the 2% target.
In assessing the appropriate stance of monetary policy, the committee will continue to monitor the impact of new information on the economic outlook. If risks emerge that could impede the committee's goals, the committee will be prepared to adjust its monetary policy stance accordingly. The committee's assessment will take into account a wide range of information, including labor market conditions, inflation pressures and expectations, as well as financial and international developments.
Those who voted in favor of this monetary policy action are: Chairman Jerome H. Powell, Vice Chairman John C. Williams, Thomas I. Barkin, Michael S. Barr, Raphael W. Bostic, Michelle W. Bowman, Lisa D. Cook, Mary C. Daly, Randal K. Quarles, Philip N. Jefferson, Adriana D. Kugler, and Christopher J. Waller. Randal K. Quarles voted as an alternate member at this meeting