The Federal Open Market Committee announced today that it will hold the target range for the federal funds rate at 4.25%-4.5%. However, Governors Michelle Bowman and Christopher Waller voted against the policy, instead preferring to lower the target range by 0.25 percent.
In a statement issued after the vote, the FOMC said recent indicators suggest economic growth moderated in the first half of the year. The unemployment rate remains low and labor market conditions remain solid, but inflation remains somewhat elevated, it said. “Uncertainty about the economic outlook remains elevated.”