FOMC Rate Decision

What the statement says

Dovish: Holds rates steady, but three members dissent in favor of a 25-basis-point hike

• Rate decision: Maintains the federal funds rate target range at 3-1/2 to 3-3/4 percent; no forward guidance or signal on future adjustments is provided.
• Inflation assessment: States 'inflation remains elevated relative to the Committee's 2 percent goal', attributing it 'in part [to] supply shocks that have driven price increases in certain sectors, including energy'.
• Labor and growth: Describes 'economic activity [as] expanding at a solid pace', 'job gains [as] keep[ing] pace with the workforce', and 'the unemployment rate [as having] changed little'.
• Balance sheet policy: Reaffirms 'continuing its policy of maintaining ample reserves in the banking system'; no change to balance sheet runoff pace is mentioned.
• Dissent specified: Beth M. Hammack, Neel Kashkari, and Lorie K. Logan voted against the action, 'who preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting.'

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