Federal Reserve issues FOMC statement

The Federal Open Market Committee (FOMC) has released a statement following a 9-3 vote in favor of maintaining their target range for the federal funds rate. The Committee decided to keep the range at 3-1/2 to 3-3/4 percent, aiming to support the dual mandate of the Federal Reserve. This decision comes despite elevated inflation that remains above their 2 percent target, partially due to supply shocks in sectors like energy.

The Committee also highlighted strong productivity growth, significant capital investment, and steady job creation, which they believe reflect a solid pace of economic expansion. However, the Committee acknowledged the lingering uncertainty caused by the ongoing conflict in the Middle East. Voting against the monetary policy action were Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, who suggested raising the target range by 1/4 percentage point.

For further information, inquiries should be directed to [email protected] or by calling 202-452-2955.