Recent data indicates that economic activity continues to grow at a steady pace. While job growth has slowed since early last year, it remains robust, and unemployment remains low. Inflation has declined over the past year but remains above desired levels.
The Committee aims to achieve maximum employment and a 2 percent inflation rate over the long term. It believes that the risks to meeting these goals are becoming more balanced. However, the economic outlook remains uncertain, and the Committee remains vigilant about inflation risks.
To support its objectives, the Committee has decided to maintain the federal funds rate target range at 5.25 to 5.5 percent. Any future adjustments to this range will depend on careful analysis of incoming data, evolving economic conditions, and risk assessments. The Committee does not anticipate lowering the target range until there is greater confidence that inflation is moving consistently toward the 2 percent target. Additionally, the Committee will continue reducing its holdings of Treasury securities, agency debt, and mortgage-backed securities, following its previously outlined plans. It remains firmly committed to bringing inflation back to its 2 percent goal.
In determining the appropriate monetary policy, the Committee will evaluate new information and its implications for the economic outlook. It is prepared to adjust its policy stance if risks arise that could hinder progress toward its objectives. These evaluations will consider various factors, including labor market trends, inflation pressures and expectations, and financial and global developments.
The monetary policy decision was supported by the following members: 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, Philip N. Jefferson, Adriana D. Kugler, Loretta J. Mester, and Christopher J. Waller.
