Article Summary: The Federal Open Market Committee released its latest statement, keeping the federal funds rate target range unchanged at 3.5% to 3.75%. The statement shows economic activity expanding at a solid pace, job growth keeping pace with labor force, but inflation remains above the 2% target, policy continues to focus on price stability.
Fed FOMC Statement: Holds Rates at 3.5%-3.75%
The Federal Open Market Committee approved its latest statement by a vote of 12-0.
To support the Fed's dual mandate, the Committee decided to maintain the federal funds rate target range at 3.5% to 3.75% and reaffirmed the policy of maintaining ample reserves 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 strong, job growth keeps pace with labor force size, and the unemployment rate has changed little.
Inflation remains above the Committee's 2% target, partly due to supply shocks pushing up prices in some areas including energy. The Committee said it remains committed to achieving price stability.
