Economic activity is expanding at a steady rate, according to available indicators. Job gains remain low, while the unemployment rate shows signs of stabilisation. Inflation is still somewhat elevated. The Committee aims to achieve maximum employment and inflation at a rate of 2 per cent over the long term. Uncertainty regarding the economic outlook remains high, and the Committee remains attentive to risks affecting its dual mandate.
To support these goals, the Committee decided to maintain the target range for the federal funds rate at 3.5 to 3.75 per cent. In determining the extent and timing of future adjustments, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee remains committed to supporting maximum employment and returning inflation to its 2 per cent target.
In assessing the appropriate monetary policy stance, the Committee will continue to monitor incoming information for its implications on the economic outlook. The Committee would be prepared to adjust the stance of monetary policy if risks emerge that could impede the attainment of the Committee’s goals. Assessments will consider a wide range of information, including readings on labour market conditions, inflation pressures and expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Beth M. Hammack; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; and Anna Paulson. Stephen I. Miran and Christopher J. Waller voted against, preferring to lower the target range for the federal funds rate by 0.25 of a percentage point.
