FOMC Statement from the US Federal Reserve – Jan. 30

Information received since the meeting of the Federal Open Market Committee in December indicates that the labor market has continued to strengthen and that economic activity has increased at a steady pace. Job creation has been strong on average in recent months and the unemployment rate has remained low. Household spending continued to grow strongly, while business fixed investment growth slowed relative to its rapid pace recorded early last year. Over 12 months, headline inflation and non-food and energy inflation remain close to 2%. Although market-based inflation-offset measures have declined in recent months, measures of long-term inflation expectations based on surveys have changed little.

In accordance with its statutory mandate, the Committee seeks to promote maximum employment and price stability. In support of these objectives, the Committee decided to maintain the federal funds rate target range from 2-1 / 4 to 2-1 / 2%. The Committee believes that the most likely results are a sustained expansion of economic activity, favorable labor market conditions and inflation close to the symmetrical 2% target of the Committee. In light of global economic and financial developments and reduced inflationary pressures, the Committee will be patient as it will determine what future adjustments to the federal funds target range might be appropriate to support these results.

To determine the timing and magnitude of future adjustments to the federal funds rate target range, the Committee will badess the economic conditions achieved and expected in relation to its maximum employment objective and its objective of achieving the goal. symmetrical inflation of 2%. This badessment will take into account a wide range of information, including measures of the labor market situation, indicators of inflationary pressures and inflation expectations, as well as readings on financial and international developments.

The votes for the FOMC monetary policy action were: Jerome H. Powell, President; John C. Williams, Vice President; Michelle W. Bowman; Lael Brainard; James Bullard; Richard H. Clarida; Charles L. Evans; Esther L. George; Randal K. Quarles; and Eric S. Rosengren.