WASHINGTON–The Federal Open Market Committee has adjourned its meeting here by opting not to push up interest rates. As a result, the federal funds rate remains at 1.50% to 1.75%.
Analysts continue to forecast that the Fed will move two to three more times to increase rates during 2018.
“Information received since the Federal Open Market Committee met in March indicates that the labor market has continued to strengthen and that economic activity has been rising at a moderate rate,” the Fed said in a statement after adjourning the meeting. “Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low. Recent data suggest that growth of household spending moderated from its strong fourth-quarter pace, while business fixed investment continued to grow strongly.”
The Fed said that on a 12-month basis, both overall inflation and inflation for items other than food and energy have moved close to its 2% annual target rate. The Fed added that market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.
“Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability,” the Fed said. “The Committee expects that, with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace in the medium term and labor market conditions will remain strong. Inflation on a 12-month basis is expected to run near the Committee's symmetric 2% objective over the medium term. Risks to the economic outlook appear roughly balanced, the Fed said.
Voting for the FOMC monetary policy action were Jerome H. Powell, Chairman; William C. Dudley, Vice Chairman; Thomas I. Barkin; Raphael W. Bostic; Lael Brainard; Loretta J. Mester; Randal K. Quarles; and John C. Williams.