FOMC Minutes

What the statement says

Neutral-to-hawkish: Hold rates steady, stress inflation stickiness and Middle East risks, majority support removing 'easing bias' language

• The Committee unanimously decided to hold the federal funds rate target range steady, citing inflation that 'remained above the Committee's 2 percent longer-run goal' and had 'moved higher', with 'almost all participants' supporting the decision.
• A majority of participants highlighted that it would likely be appropriate to remove the language from the postmeeting statement that suggested an easing bias regarding the likely direction of future interest rate decisions.
• The staff's inflation forecast for this year was higher than the one prepared for the March meeting, reflecting incoming data, higher energy prices, and other effects of the Middle East conflict; inflation is projected to slow after the first half of this year and be 'close to 2 percent' by the end of next year.
• Labor market conditions were judged 'stable in the near term', but 'risks to the employment side of the Committee's dual mandate were tilted to the downside'; several participants noted firms may 'delay or reduce hiring' due to economic uncertainty or AI adoption, and a fall in labor demand 'could push the unemployment rate sharply higher'.
• Reserve management purchases (RMPs) were confirmed as having helped 'maintain a state of ample reserves'; the decline in reserve balances induced by April's tax payments was 'large and steep but close to the Desk's expectations' and occurred 'alongside orderly money market behavior'.

AI-generated summary of the official text. The official statement is authoritative. Not investment advice.