Federal Open Market Committee (FOMC) of the US Federal Reserve decided to maintain the target range for the federal funds rate at 5.25 to 5.5 percent.
Recent indicators suggest that economic activity has continued to expand at a solid pace, the Fed said in a press release on Wednesday.
Job gains have moderated, and the unemployment rate has moved up but remains low. Inflation has eased over the past year but remains somewhat elevated.
In recent months, there has been some further progress toward the Committee’s two percent inflation objective, according to the statement.
FOMC seeks to achieve maximum employment and inflation at the rate of two percent over the longer run. The (monetary policy-making) Committee judges that the risks to achieving its employment and inflation goals continue to move into better balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate. — In considering any adjustments to the target range for the federal funds ra
te, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks, the statement noted. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. The Committee is strongly committed to returning inflation to its two percent objective.
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 expectatio
ns, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Austan D. Goolsbee; Philip N. Jefferson; Adriana D. Kugler; and Christopher J. Waller. Austan D. Goolsbee voted as an alternate member at this meeting.
Source: Kuwait News Agency