WASHINGTON–As expected, Federal Open Market Committee has concluded its meeting today and opted to not raise rates, leaving the target range for the federal funds rate at 2.25% to 2.50%.
In a statement released at the conclusion of its meeting here, the FOMC said data show that since March, the labor market has remained strong and that economic activity rose at a solid rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low, the Fed said.
While acknowledging growth of household spending and business fixed investment slowed in the first quarter, the Fed noted that on a 12-month basis, overall inflation and inflation for items other than food and energy have declined and are running below 2%. “On balance, market-based measures of inflation compensation have remained low in recent months, and survey-based measures of longer-term inflation expectations are little changed,” the FOM stated.
“The Committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2% objective as the most likely outcomes,” the FOMC said. “In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes.”
Voting for the FOMC monetary policy action were: Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; James Bullard; Richard H. Clarida; Charles L. Evans; Esther L. George; Randal K. Quarles; and Eric S. Rosengre.