Federal Reserve issues FOMC statement
EDT
Recent indicators suggest that economic activity has been
expanding at a solid pace. Job gains have slowed in recent months but
remain strong, and the unemployment rate has remained low. Inflation
remains elevated.
The U. S. banking system is sound and
resilient. Tighter credit conditions for households and businesses are
likely to weigh on economic activity, hiring, and inflation. The
extent of these effects remains uncertain. The Committee remains
highly attentive to inflation risks.
The Committee seeks
to achieve maximum employment and inflation at the rate of 2 percent
over the longer run. In support of these goals, the Committee decided
to maintain the target range for the federal funds rate at 5-1/4 to
5-1/2 percent. The Committee will continue to assess additional
information and its implications for monetary policy. In determining
the extent of additional policy firming that may be appropriate to
return inflation to 2 percent over time, the Committee will take into
account the cumulative tightening of monetary policy, the lags with
which monetary policy affects economic activity and inflation, and
economic and financial developments. In addition, the Committee will
continue reducing its holdings of Treasury securities and agency debt
and agency mortgage-backed securities, as described in its previously
announced plans. The Committee is strongly committed to returning
inflation to its 2 percent objective.
In assessing the
appropriate stance of monetary policy, the Committee will continue to
monitor the implications of incoming information for the economic
outlook. The Committee would be prepared to adjust the stance of
monetary policy as appropriate if risks emerge that could impede the
attainment of the Committee's goals. The Committee's assessments will
take into account a wide range of information, including readings on
labor market conditions, inflation pressures and inflation
expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell,
Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W.
Bowman; Lisa D. Cook; Austan D. Goolsbee; Patrick Harker; Philip N.
Jefferson; Neel Kashkari; Adriana D. Kugler; Lorie K. Logan; and
Christopher J. Waller.
For media inquiries, please email
[email protected] or call 202-452-2955.
Implementation
Note issued September 20, 2023 Last Update: September 20, 2023