FOMC Holds Rates Steady

At its meeting today, the Federal Open Market Committee (FOMC) unanimously voted to maintain the target range for the federal funds rate at 1.75 to 2.0 percent. The committee’s statement was nearly identical to that of June, once again noting “that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective over the medium term.”

The committee’s statement described economic activity as rising at a “strong rate.” It also acknowledged the “strong” job gains and that business investment and household spending were growing “strongly”. This further reinforces the expectation that the FOMC will raise rates at its next meeting in September.

Read the FOMC statement.