Federal Reserve Resolution Full Text: Maintain Interest Rates Steady, No Signal for Rate Cuts

The Federal Reserve has maintained the target range for the federal funds rate at 5.25%-5.50% for the eighth consecutive time and reiterated that it will not lower rates until it has greater confidence in inflation, stating that the committee will pay attention to both inflation and employment risks.

Full Text of the Interest Rate Decision

Recent indicators suggest that economic activity continues to expand at a solid pace. Job growth has slowed, and the unemployment rate has risen, but remains low. Over the past year, inflation has eased somewhat but is still somewhat elevated. In recent months, the committee has achieved some further progress toward its 2% inflation target.

The committee is committed to maximizing employment and achieving a 2% inflation rate over the long term. The committee believes that the risks to achieving employment and inflation goals are gradually becoming more balanced. Economic prospects are uncertain, and the committee is attentive to the risks to its dual mandate.

To support its goals, the committee decided to maintain the target range for the federal funds rate at 5.25%-5.5%. When considering any adjustments to the target range for the federal funds rate, the committee will carefully assess new data, evolving outlooks, and the balance of risks. The committee believes that it is not appropriate to lower the target range unless there is increased confidence in achieving inflation toward the 2% target on a sustained basis. Additionally, the committee will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities. The committee is firmly committed to restoring inflation to the 2% target.

In assessing the appropriate monetary policy stance, the committee will continue to monitor how new information affects the economic outlook. If risks emerge that could impede the committee's ability to achieve its goals, the committee will be prepared to adjust the monetary policy stance as appropriate. The committee's assessment will take into account a wide range of information, including labor market conditions, inflation pressures and expectations, as well as financial and international developments.

Voting in support of this monetary policy action were: Chair Jerome H. Powell, Vice Chair John C. Williams, Thomas I. Barkin, Michael S. Barr, Raphael W. Bostic, Michelle W. Bowman, Lisa D. Cook, Mary C. Daly, Austan D. Goolsbee, Philip N. Jefferson, Adriana D. Kugler, and Christopher J. Waller. Austan D. Goolsbee voted as a substitute member at this meeting.