March 19May 07,
2025
Federal Reserve issues FOMC statement
For release at 2:00 p.m. EDT
RecentShare
Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated.
The Committee seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. Uncertainty aroundabout
the economic outlook has increased further.
The Committee is attentive to the risks to both sides of its dual mandate
and judges that the risks of higher unemployment and higher inflation have
risen.
In support of its goals, the Committee decided to maintain
the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In
considering the extent and timing of 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. Beginning in
April, the Committee will slow the pace of decline of its securities holdings
by reducing the monthly redemption cap on Treasury securities from $25 billion
to $5 billion. The Committee will maintain the monthly redemption cap on agency
debt and agency mortgage-backed securities at $35 billion. 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; Michael S. Barr; Michelle W. Bowman; Susan
M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Neel
Kashkari; Adriana D. Kugler; Alberto G. Musalem; and Jeffrey
R. Schmid. Voting against this action was Christopher J. Waller,
who supported no change for the federal funds target range but preferred to
continue the current pace of decline in securities holdings..
Neel Kashkari voted as an alternate member at this meeting.
