Recent economic indicators suggest that the United States’ economic activity is expanding at a solid pace, according to a statement from the Federal Reserve. Despite fluctuations in net exports, the unemployment rate remains low, and labor market conditions are stable. Inflation, however, is still somewhat elevated.
The Federal Open Market Committee (FOMC) aims to achieve maximum employment and maintain inflation at 2 percent over the long term. While uncertainty about the economic outlook has decreased, it remains high. The Committee is mindful of risks to both aspects of its dual mandate.
To support these goals, the FOMC has decided to keep the target range for the federal funds rate between 4-1/4 and 4-1/2 percent. In determining future adjustments to this rate, the Committee will evaluate incoming data and consider risks. It will also continue reducing its holdings of Treasury securities and agency debt and mortgage-backed securities. The Committee emphasizes its commitment to achieving maximum employment and returning inflation to its 2 percent goal.
The FOMC will monitor new information regarding the economic outlook to determine an appropriate monetary policy stance. It is prepared to adjust this stance if necessary should any risks threaten its objectives. Assessments will include various factors such as labor market conditions, inflation pressures and expectations, as well as financial and international developments.
Voting in favor of this monetary policy action were Jerome H. Powell (Chair), John C. Williams (Vice Chair), Michael S. Barr, Michelle W. Bowman, Susan M. Collins, Lisa D. Cook, Austan D. Goolsbee, Philip N. Jefferson, Adriana D. Kugler, Alberto G. Musalem, Jeffrey R. Schmid, and Christopher J. Waller.
For further media inquiries regarding this announcement from the Federal Reserve’s FOMC statement issued on June 18th, 2025 please contact [email protected] or call 202-452-2955.
