Federal Reserve Board – Federal Reserve issues FOMC statement
Federal Reserve Board – Federal Reserve issues FOMC statement
The Federal Reserve has released its latest statement on the state of the US economy. Recent indicators suggest that economic activity has been expanding at a solid pace, with strong job gains and a low unemployment rate. However, tighter credit conditions for households and businesses are expected to weigh on economic activity, hiring, and inflation. The Federal Reserve remains committed to achieving maximum employment and 2 percent inflation over the longer run. To support these goals, the Committee has decided to maintain the target range for the federal funds rate. The Committee will continue to assess additional information and adjust monetary policy as necessary.
Economic Expansion and Job Market
The US economy has been experiencing solid growth, with indicators showing that economic activity has been expanding at a steady pace. Despite recent slowdowns in job gains, the job market remains strong, and the unemployment rate remains low. This indicates a healthy and resilient banking system in the US.
Tighter Credit Conditions and Inflation Risks
Tighter credit conditions for households and businesses are expected to have an impact on economic activity, hiring, and inflation. However, the extent of these effects remains uncertain. The Federal Reserve is closely monitoring inflation risks and remains highly attentive to any potential risks that could impede the achievement of its goals.
The Committee is committed to returning inflation to its 2 percent objective and will take into account various factors, including the cumulative tightening of monetary policy, the lags with which monetary policy affects the economy, and economic and financial developments.
Monetary Policy and Future Outlook
The Federal Reserve will continue to assess incoming information to determine the appropriate stance of monetary policy. If risks emerge that could impede the attainment of the Committee’s goals, the Committee would be prepared to adjust the stance of monetary policy accordingly.
The Committee’s assessments will consider a wide range of information, including labor market conditions, inflation pressures and expectations, and financial and international developments. The Federal Reserve remains committed to achieving maximum employment and 2 percent inflation over the longer run, and will continue to adjust monetary policy as necessary to support these goals.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; and other members of the Committee.
