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Recent indicators suggest that economic activity has continued
to expand at a solid pace. Job gains have slowed, and the
unemployment rate has moved up but remains low. Inflation has
made further progress toward the Committee’s 2 percent objective
but remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation
at the rate of 2 percent over the longer run. The Committee has
gained greater confidence that inflation is moving sustainably
toward 2 percent, and judges that the risks to achieving its
employment and inflation goals are roughly in balance. The
economic outlook is uncertain, and the Committee is attentive to
the risks to both sides of its dual mandate.
In light of the progress on inflation and the balance of risks,
the Committee decided to lower the target range for the federal
funds rate by 1/2 percentage point to 4-3/4 to 5 percent. In
considering additional adjustments to the target range for the
federal funds rate, the Committee will carefully assess incoming
data, the evolving outlook, and the balance of risks. The
Committee will continue reducing its holdings of Treasury
securities and agency debt and agency mortgage‑backed
securities. The Committee is strongly committed to supporting
maximum employment and returning inflation to its 2 percent
objective.
In assessing the appropriate stance of monetary policy, the
Committee will continue to monitor the implications of incoming
information for the economic outlook. The Committee would be
prepared to adjust the stance of monetary policy as appropriate
if risks emerge that could impede the attainment of the
Committee’s goals. The Committee’s assessments will take into
account a wide range of information, including readings on labor
market conditions, inflation pressures and inflation
expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell,
Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael
S. Barr; Raphael W. Bostic; Lisa D. Cook; Mary C. Daly; Beth M.
Hammack; Philip N. Jefferson; Adriana D. Kugler; and Christopher
J. Waller.
Voting against this action was Michelle W. Bowman, who preferred
to lower the target range for the federal funds rate by 1/4
percentage point at this meeting.
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