Fed FOMC Statement Holds Interest Rates Steady, Emphasizes Inflation Still Above Target

The Federal Open Market Committee (FOMC) approved the following statement by a vote of 12 in favor and 0 against.

To support the Fed's dual mandate, the Committee decided to keep the target range for the federal funds rate unchanged at 3.5% to 3.75%. The Committee reaffirmed its policy of maintaining ample reserve balances in the banking system.

Despite some uncertainty, partly due to the Middle East conflict, economic activity continues to expand at a solid pace. Productivity growth and capital investment are robust, job growth is in line with labor force growth, and the unemployment rate has changed little.

Inflation remains above the Committee's 2% target, partly due to supply shocks that have pushed up prices in some sectors, including energy. The Committee is committed to achieving price stability.