In their post-meeting statement, The Federal Reserve Open Market Committee (FOMC) noted that economic activity expanded moderately in recent months, citing moderate growth in household spending as well as improvement in the housing sector. The FOMC also cited continued improvement in the labor market, noting that “underutilization of labor resources has diminished since early this year.”
In discussing the target range for the federal funds rate, the Committee reaffirmed its view that the current rate of 0 – 0.25 percent is appropriate. Once again, the statement noted that it would be data driven in determining when to raise rates.
Job growth was “solid” and unemployment declined, but inflation continued to run below the Committee’s long-run objective, partly due to lower energy prices and falling prices of non-energy imports.
The Committee expects inflation to remain low in the near term, but rise toward 2 percent over the medium term as the labor market improves and the “transitory effects” of low energy and import prices dissipate.
Read the full statement.