Recent data shows that economic growth in the United States slowed during the first half of the year, according to indicators referenced by the Federal Reserve. The unemployment rate remains low and labor market conditions are described as solid, while inflation is still somewhat above desired levels.
The Federal Open Market Committee (FOMC) announced it will keep its target range for the federal funds rate at 4-1/4 to 4-1/2 percent. The Committee stated, “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate.”
The FOMC reaffirmed its commitment to monitoring incoming data and assessing how changes in economic conditions might affect future policy decisions. “In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.”
The statement emphasized ongoing vigilance: “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 expectations, and financial and international developments.”
Nine members voted in favor of maintaining current rates: Jerome H. Powell (Chair), John C. Williams (Vice Chair), Michael S. Barr, Susan M. Collins, Lisa D. Cook, Austan D. Goolsbee, Philip N. Jefferson, Alberto G. Musalem, and Jeffrey R. Schmid.
Two members—Michelle W. Bowman and Christopher J. Waller—voted against this action because they preferred lowering rates by a quarter percentage point at this meeting.
Adriana D. Kugler was absent from this vote.
For further information or media inquiries regarding this decision or related topics concerning U.S monetary policy or Federal Reserve actions, contact details have been provided by officials.
