Federal Reserve issues FOMC statement
EST
Recent indicators suggest that economic activity has
continued to expand at a solid pace. Since earlier in the year, labor
market conditions have generally eased, and the unemployment rate has
moved up but remains low. Inflation has made 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
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 support of its goals, the Committee decided to lower the
target range for the federal funds rate by 1/4 percentage point to
4-1/4 to 4-1/2 percent. In considering the extent and timing of
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;
Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Philip N. Jefferson;
Adriana D. Kugler; and Christopher J. Waller. Voting against the
action was Beth M. Hammack, who preferred to maintain the target range
for the federal funds rate at 4-1/2 to 4-3/4 percent.
For
media inquiries, please email [email protected] or call 202-452-2955.
Implementation Note issued December 18, 2024 Last Update:
December 18, 2024