FOMC Rate Decision

What the statement says

The FOMC raised the federal funds rate target range by 25 basis points to 5-1/4 to 5-1/2 percent and reaffirmed its strong commitment to returning inflation to 2 percent.

• Raised the federal funds rate target range by 25 basis points to 5-1/4 to 5-1/2 percent.
• Noted that inflation remains elevated, the Committee remains highly attentive to inflation risks, and is strongly committed to returning inflation to its 2 percent objective.
• Continued reducing its holdings of Treasury securities, agency debt, and agency mortgage-backed securities as described in previously announced plans.
• 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 in determining the extent of additional policy firming.
• Will continue to assess the implications of incoming information for the economic outlook and stands ready to adjust the stance of monetary policy as appropriate if risks emerge that could impede attainment of its goals.

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