January 31, 2024
December 13, 2023
For release at 2:00 p.m. EST
Recent indicators suggest that growth of economic activity has slowed from its strong pace in the third quarter. been expanding at a solid pace. Job gains have moderated since earlier in the early last year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. The In considering any adjustments to the target range for the federal funds rate, the Committee will continue to carefully assess additional information incoming data, the evolving outlook, and its implications for monetary policy. In determining the extent balance of any additional policy firming that may risks. The Committee does not expect it will be appropriate to return reduce the target range until it has gained greater confidence that inflation to is moving sustainably toward 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to 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; Michelle W. Bowman; Lisa D. Cook; Austan D. Goolsbee; Patrick Harker; Mary C. Daly; Philip N. Jefferson; Neel Kashkari; Adriana D. Kugler; Lorie K. Logan; Loretta J. Mester; and Christopher J. Waller.
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Implementation Note issued January 31, 2024
The U.S. banking system is sound and resilient. Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks.
Implementation Note issued December 13, 2023