Fed Holds Rate at 4-1/4 to 4-1/2 Percent
The FOMC decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. It said it will carefully assess incoming data, the evolving outlook, and the balance of risks when considering additional adjustments. 1
The statement said economic activity has continued to expand at a solid pace, the unemployment rate remains low, and inflation remains somewhat elevated. It said uncertainty about the outlook has diminished but remains elevated. 1
Chair Powell said GDP edged down in the first quarter, reflecting swings in net exports as businesses brought in imports ahead of potential tariffs. Private domestic final purchases grew at a solid 2.5 percent rate. 1
The June Summary of Economic Projections shows 2025 real GDP growth of 1.4 percent, an unemployment rate of 4.5 percent and PCE inflation of 3.0 percent. 1
At the June 17–18 meeting, participants continued discussing the review of the monetary policy framework, focusing on assessing risks and uncertainty and their implications for policy strategy and communications. 1