Recent indicators show that economic activity continues to expand at a solid pace, despite fluctuations in net exports. The unemployment rate has stabilized at a low level, and labor market conditions remain strong. However, inflation is somewhat elevated.
The Federal Reserve's Committee aims for maximum employment and an inflation rate of 2 percent over the long term. There is increased uncertainty about the economic outlook, with rising risks of higher unemployment and inflation.
To support its goals, the Committee decided to maintain the federal funds rate target range at 4-1/4 to 4-1/2 percent. Future adjustments will depend on incoming data, evolving outlooks, and risk assessments. The Committee will continue reducing its holdings of Treasury securities and agency debt and mortgage-backed securities. It remains committed to supporting maximum employment and returning inflation to its 2 percent target.
The Committee will monitor incoming information for its implications on the economic outlook and adjust monetary policy as needed if risks threaten their goals. Assessments will consider 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, Neel Kashkari (as an alternate member), Adriana D. Kugler, Alberto G. Musalem, and Christopher J. Waller.
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