Fed FOMC Statement: Rates Unchanged, Inflation Still Above Target

The Federal Open Market Committee approved the following statement by a vote of 12 in favor and 0 against:

To support the Fed's dual mandate, the Committee decided to maintain the target range for the federal funds rate at 3.5% to 3.75%. The Committee reaffirmed its policy of maintaining ample reserve levels in the banking system.

Despite some uncertainty, partly due to the Middle East conflict, economic activity is expanding at a steady pace. Productivity growth and capital investment are strong. Employment growth is keeping pace with the labor force, and the unemployment rate is little changed.

Inflation remains above the Committee's 2% target, partly reflecting supply shocks that have pushed up prices in certain areas, including energy. The Committee is committed to achieving price stability.