Fed FOMC Statement: Rates Unchanged, Inflation Above Target

The Federal Open Market Committee voted 12-0 to approve the following statement.

To support the Fed's dual mandate, the Committee decided to keep the target range for the federal funds rate at 3.5% to 3.75%. The Committee reaffirmed its policy of maintaining ample reserves in the banking system.

Despite some uncertainty, partly due to the Middle East conflict, economic activity has been expanding at a solid pace. Productivity growth and capital investment have been strong. Employment growth has kept pace with labor force growth, and the unemployment rate has changed little.

Inflation remains above the Committee's 2% target, partly due to supply shocks that have boosted prices in certain sectors, including energy. The Committee is committed to achieving price stability.