U.S. Federal Open Market Committee June 19: Statement Text
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
(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 May indicates that the labor market remains strong and that
economic activity is rising at a moderate rate. Job gains have
been solid, on average, in recent months, and the unemployment
rate has remained low. Although growth of household spending
appears to have picked up from earlier in the year, indicators
of business fixed investment have been soft. On a 12-month
basis, overall inflation and inflation for items other than food
and energy are running below 2 percent. Market-based measures of
inflation compensation have declined; survey-based measures of
longer-term inflation expectations are little changed.
Consistent with its statutory mandate, the Committee seeks to
foster maximum employment and price stability. In support of
these goals, the Committee decided to maintain the target range
for the federal funds rate at 2-1/4 to 2-1/2 percent. The
Committee continues to view sustained expansion of economic
activity, strong labor market conditions, and inflation near the
Committee’s symmetric 2 percent objective as the most likely
outcomes, but uncertainties about this outlook have increased.
In light of these uncertainties and muted inflation pressures,
the Committee will closely monitor the implications of incoming
information for the economic outlook and will act as appropriate
to sustain the expansion, with a strong labor market and
inflation near its symmetric 2 percent objective.
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 monetary policy action were Jerome H. Powell,
Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael
Brainard; Richard H. Clarida; Charles L. Evans; Esther L.
George; Randal K. Quarles; and Eric S. Rosengren. Voting against
the action was James Bullard, who preferred at this meeting to
lower the target range for the federal funds rate by 25 basis
points.
SOURCE: Federal Reserve Board
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