The Federal Reserve kept the target range for the federal funds rate unchanged at 5.25%-5.50% for the eighth consecutive time, and reiterated that it would not cut interest rates until it had greater confidence in inflation, saying that the committee would pay attention to 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 gains have moderated somewhat and the unemployment rate has increased somewhat but remains low. Inflation has eased somewhat over the past year but remains somewhat elevated. In recent months, the Committee has made some further progress toward its 2 percent inflation objective.
The Committee is committed to achieving maximum employment and 2 percent inflation over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are becoming more balanced. The economic outlook is uncertain, and the Committee is mindful of risks to its dual mandate.
To support its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/ 2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess emerging data, the changing outlook, and the balance of risks. The Committee does not believe it would be appropriate to lower the target range until confidence increases that inflation is moving toward its 2 percent goal on a sustained basis. In addition, the Committee will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities. The Committee is strongly committed to returning inflation to its 2 percent goal.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. If risks emerge that could impede the Committee's achievement of its goals, the Committee will be prepared to adjust the stance of monetary policy as appropriate. The Committee's assessments will take into account a wide range of information, including labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting in favor of this monetary policy action were: Jerome H. Powell, Chairman; John C. Williams, Vice Chairman; 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.
