The Latest FOMC Statement from the Federal Reserve Board – Stay Updated on Monetary Policy!

The Federal Reserve issued a statement indicating that recent indicators point towards a solid expansion in economic activity. While job gains have slowed in recent months, they remain strong and the unemployment rate remains low. Inflation levels, however, have remained high.

The U.S. banking system is described as sound and resilient, but tighter credit conditions for households and businesses are expected to have a negative impact on economic activity, hiring, and inflation. The extent of these effects is uncertain, and the Committee is closely monitoring inflation risks.

In line with its goals of achieving maximum employment and inflation levels of 2 percent over the long term, the Committee has decided to keep the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. The Committee will continue to assess new information and its implications for monetary policy. When deciding on the appropriate level of policy firming to return inflation to 2 percent over time, the Committee will consider factors such as cumulative tightening of monetary policy, the time lag in which monetary policy affects economic activity and inflation, as well as economic and financial developments. As previously announced, the Committee will also continue to reduce its holdings of Treasury securities and agency debt and mortgage-backed securities. The Committee is strongly committed to achieving its 2 percent inflation objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to closely monitor incoming information related to the economic outlook. If risks emerge that could hinder the Committee’s goals, the Committee is prepared to adjust the stance of monetary policy accordingly. The Committee’s assessments will take into account various factors, including labor market conditions, inflation pressures and expectations, and financial and international developments.

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 voted in favor of the monetary policy action.

For media inquiries, please email [email protected] or call 202-452-2955.

This statement was implemented on September 20, 2023.