FOMC Rate Decision

What the statement says

The FOMC maintained the federal funds rate target range at 4-1/4 to 4-1/2 percent and announced a slowdown in Treasury securities runoff starting in April—from $25 billion to $5 billion per month—while keeping agency debt and MBS runoff caps unchanged at $35 billion.

• The target range for the federal funds rate was held steady at 4-1/4 to 4-1/2 percent.
• Beginning in April 2025, the monthly redemption cap on Treasury securities will be reduced from $25 billion to $5 billion; the $35 billion monthly cap on agency debt and agency MBS redemptions remains unchanged.
• Inflation remains somewhat elevated, and the Committee remains strongly committed to achieving its 2 percent inflation objective and maximum employment.
• The Committee will carefully assess incoming data, the evolving outlook, and the balance of risks in determining the extent and timing of any additional adjustments to the target range.
• Christopher J. Waller voted against the action, supporting no change to the federal funds rate target range but preferring to continue the current pace of decline in securities holdings.

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