The Federal Open Market Committee announced today 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, “Inflation has eased substantially over the past year while the labor market has remained strong and that’s very good news. But inflation is still too high, further progress in bringing it down is not assured, and the path forward is uncertain.” Powell also added that “So far this year, the data have not given us that greater confidence. In particular, and as I noted earlier, readings on inflation have come in above expectations. It is likely that gaining such greater confidence will take longer than previously expected. We are prepared to maintain the current target range for the federal funds rate for as long as appropriate.”
Read the Federal Reserve statement.
