Federal Reserve issues FOMC statement
EDT
Recent indicators suggest that economic activity has
continued to expand at a solid pace. Job gains have slowed, and the
unemployment rate has moved up but remains low. Inflation has made
further progress toward the Committee's 2 percent objective but
remains somewhat elevated.
The Committee seeks to achieve
maximum employment and inflation at the rate of 2 percent over the
longer run. The Committee has gained greater confidence that inflation
is moving sustainably toward 2 percent, and judges that the risks to
achieving its employment and inflation goals are roughly in balance.
The economic outlook is uncertain, and the Committee is attentive to
the risks to both sides of its dual mandate.
In light of
the progress on inflation and the balance of risks, the Committee
decided to lower the target range for the federal funds rate by 1/2
percentage point to 4-3/4 to 5 percent. In considering additional
adjustments to the target range for the federal funds rate, the
Committee will carefully assess incoming data, the evolving outlook,
and the balance of risks. The Committee will continue reducing its
holdings of Treasury securities and agency debt and agency
mortgageâbacked securities. The Committee is strongly committed to
supporting maximum employment and 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;
Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Lisa D. Cook;
Mary C. Daly; Beth M. Hammack; Philip N. Jefferson; Adriana D. Kugler;
and Christopher J. Waller. Voting against this action was Michelle W.
Bowman, who preferred to lower the target range for the federal funds
rate by 1/4 percentage point at this meeting.
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Implementation Note issued September 18, 2024 Last Update:
September 18, 2024