The Federal Reserve has issued a statement from the Federal Open Market Committee (FOMC) regarding its monetary policy decisions. Recent data indicates that economic activity is expanding steadily, with unemployment stabilizing at low levels and solid labor market conditions. However, inflation remains somewhat elevated.
The FOMC aims to achieve maximum employment and maintain inflation at 2 percent over the long term. The committee acknowledges increased uncertainty in the economic outlook and is aware of risks affecting its dual mandate.
To support these goals, the FOMC has decided to keep the federal funds rate target range between 4-1/4 to 4-1/2 percent. Future adjustments will be based on incoming data, evolving outlooks, and risk assessments. Additionally, the committee plans to reduce its holdings of Treasury securities and agency debt as well as agency mortgage-backed securities. Starting in April, it will decrease the monthly redemption cap on Treasury securities from $25 billion to $5 billion while maintaining a $35 billion cap for agency debt and mortgage-backed securities.
The committee remains committed to supporting maximum employment and achieving its 2 percent inflation objective. It will monitor new information’s impact on the economic outlook and adjust monetary policy if necessary to meet its goals. This assessment includes labor market conditions, inflation pressures, expectations, and financial and international developments.
Voting for 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, and Jeffrey R. Schmid. Christopher J. Waller voted against this action; he supported no change in the federal funds target range but preferred continuing the current pace of decline in securities holdings.
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