FOMC Holds Federal Funds Rate at 4-1/4 to 4-1/2 Percent
The Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. It will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. 1
The statement says growth of economic activity moderated in the first half of the year, the unemployment rate remains low, and inflation remains somewhat elevated. It also says uncertainty about the economic outlook remains elevated. 1
Chair Powell said GDP rose at a 1.2 percent pace in the first half of the year, down from 2.5 percent last year, with the second quarter at 3 percent. He said the moderation largely reflects a slowdown in consumer spending. 1
On future adjustments, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. It would be prepared to adjust the policy stance if risks emerge that could impede its goals. 1
The minutes report that participants discussed the framework review and said the Committee was close to finalizing changes to the consensus statement. Over the intermeeting period, equity prices increased, credit spreads narrowed, and the dollar depreciated slightly. 1