U.S. Federal Open Market Committee Dec. 19: Statement Text
U.S. FOMC Raises Rates Fourth Time This Year
(Bloomberg) --
(Bloomberg) -- Following is the FOMC statement released
today by the Federal Reserve in Washington:
Information received since the Federal Open Market Committee met
in November indicates that the labor market has continued to
strengthen and that economic activity has been rising at a
strong rate. Job gains have been strong, on average, in recent
months, and the unemployment rate has remained low. Household
spending has continued to grow strongly, while growth of
business fixed investment has moderated from its rapid pace
earlier in the year. On a 12-month basis, both overall inflation
and inflation for items other than food and energy remain near 2
percent. Indicators of longer-term inflation expectations are
little changed, on balance.
Consistent with its statutory mandate, the Committee seeks to
foster maximum employment and price stability. The Committee
judges that some further gradual increases in the target range
for the federal funds rate will be consistent with sustained
expansion of economic activity, strong labor market conditions,
and inflation near the Committee’s symmetric 2 percent objective
over the medium term. The Committee judges that risks to the
economic outlook are roughly balanced, but will continue to
monitor global economic and financial developments and assess
their implications for the economic outlook.
In view of realized and expected labor market conditions and
inflation, the Committee decided to raise the target range for
the federal funds rate to 2-1/4 to 2-1/2 percent.
In determining the timing and size of future adjustments to the
target range for the federal funds rate, the Committee will
assess realized and expected economic conditions relative to its
maximum employment objective and its symmetric 2 percent
inflation objective. This assessment will take into account a
wide range of information, including measures of labor market
conditions, indicators of inflation pressures and inflation
expectations, and readings on financial and international
developments.
Voting for the FOMC monetary policy action were: Jerome H.
Powell, Chairman; John C. Williams, Vice Chairman; Thomas I.
Barkin; Raphael W. Bostic; Michelle W. Bowman; Lael Brainard;
Richard H. Clarida; Mary C. Daly; Loretta J. Mester; and Randal
K. Quarles.
SOURCE: Federal Reserve Board
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