Federal Reserve issues FOMC statement

The Federal Open Market Committee, by a 10-2 vote, decided to retain the federal funds rate target range between 3.75% and 4.0%, in accordance with the Federal Reserve's dual mandate. The Committee continues to ensure sufficient reserves within the banking system. Economic activity is currently expanding rapidly; however, geopolitical uncertainties persist, though domestic spending remains robust.

Productivity growth is substantial, and capital investment is also strong. Job growth has kept pace with the workforce, and the unemployment rate has shown minimal change. Despite elevated inflation levels, further information will aid the Committee in determining the appropriate policy stance to bring inflation back to its 2% target in a timely manner.

The Committee is committed to achieving price stability. The sole dissenters against the monetary policy decision were Lisa D. Cook and Beth M. Hammack, who advocated for raising the federal funds rate target range by 0.25 percentage points at the meeting. For media inquiries, please contact [email protected] or call 202-452-2955.