Full text of the Fed decision: Keeping interest rates unchanged and not signaling a rate cut

Golden Ten New Media

2024-08-01 02:07Published in Guangdong

The Fed kept interest rates unchanged as expected, reiterating that it would not cut rates until there was greater confidence in inflation, and there was no clear signal that it would cut rates in September.

For the eighth time in a row, the Fed left the target range for the federal funds rate unchanged at 5.25%-5.50% and reiterated that it would not cut rates until there is greater confidence in inflation, saying the committee would focus on 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 it remains low. Over the past year, inflation has eased somewhat, but remains somewhat elevated. In recent months, the Committee has made some further progress towards its 2% inflation target.

The Commission is committed to maximizing employment and achieving a 2% inflation rate over the long term. The Committee believes that the risks of achieving the employment and inflation targets are gradually becoming more balanced. The economic outlook is uncertain and the Committee is concerned about the risks of its dual mission.

In support of its objectives, the Committee decided to maintain the target range for the federal funds rate between 5.25%-5.5%. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess the balance of new data, the changing outlook, and risks. The Committee believes that a reduction in the target range is not appropriate unless there is increased confidence that inflation is consistently achieving the 2% target. In addition, the Committee will continue to reduce its holdings of Treasuries, agency debt, and agency mortgage-backed securities. The Committee is firmly committed to returning inflation to its 2% target.

In assessing the appropriate monetary policy stance, the Committee will continue to monitor the impact of new information on the economic outlook. The Committee will be prepared to adjust its monetary policy stance as appropriate if risks arise that could prevent the Committee from achieving its objectives. The Committee's assessment will take into account a wide range of information, including labour market conditions, inflationary pressures and inflation expectations, as well as financial and international developments.

Voting in favor of this monetary policy action were: Chairman Jerome · H. · Powell, Vice Chairman John · C·Williams, Thomas· I. · Barkin, Michael · · Barr, Raphael · W. · Bostic, Michelle · W. · Bowman, Lisa · D. · Cook, Mary · C. · Daley, Ostein · D. · Goolsby, Philip · N. · Jefferson, Adriana · D· Coogler and Christopher · J. · Waller. Ostein · D· Goolsbee voted as a substitute at this meeting.

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