FOMC keeps rate unchanged

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

In its statement, the FOMC said that “the Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”

Regarding the FOMC cutting rates, Federal Reserve Chairman Jerome Powell stated that “the median participant wrote down three rate cuts this year, but I think to get to that place where we feel comfortable starting the process, we need some confirmation that inflation is in fact coming down sustainably to 2%.” Powell also added that “we’ve had inflation come down without a slow economy and without important increases in unemployment. There’s no reason why we should want to get in the way of that process if it is going to continue.”

Read the Federal Reserve statement.