FOMC keeps rates unchanged

The Federal Open Market Committee today announced it would maintain the target range for the federal funds rate at 5.25% – 5.5%.

In its statement, the FOMC said that “recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have slowed in recent months but remain strong, and the unemployment rate has remained low. Inflation remains elevated.”

Despite these positive signs, Federal Reserve Chairman Jerome Powell acknowledged that “the process of getting inflation sustainably down to 2 percent has a long way to go.” Powell stated that “a soft landing is a primary objective” but reiterated that restoring price stability is the priority. “The record is clear on that—if you don’t restore price stability, inflation comes back,” he said.  

Lastly, Fed officials foresee one more interest-rate hike before the end of the year, according to the dot plot in the Fed’s latest Summary of Economic Projections.

Read the Federal Reserve statement.