December 18, 2024
The Federal Reserve issues the FOMC statement
To be released at 2:00 PM EST
Recent indications suggest that economic activity has continued to expand at a strong pace. Since earlier in the year, labor market conditions have generally deteriorated, and the unemployment rate has moved up but remains low. Inflation has made progress towards the Committee's 2 per cent objective but is still somewhat high.
The Committee seeks to achieve maximum employment and inflation at a rate of 2 per cent over the long term. The Committee believes that the risks to achieving its employment and inflation objectives are almost balanced. The economic outlook is uncertain, and the Committee is aware of the risks to both sides of its dual mandate.
In support of its goals, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/4 to 4-1/2 percent. In considering the rate and timing of changes as well as the target range for the federal funding level, the Committee will carefully evaluate incoming data, the evolving outlook, and the balance of risks. The Committee will continue to reduce the amount of Treasury securities and agency debt and agency mortgage-backed securities. The Committee has a strong commitment to supporting higher earnings and returning inflation to its 2 per cent target.
In assessing the appropriateness of monetary policy, the Committee will continue to monitor the impact of incoming information on the economic outlook. The Committee would be willing to change the position of monetary policy as appropriate if risks appear that could hinder the achievement of the Committee's objectives. The Committee's assessments take into account a wide range of information, including readings on labor market conditions, inflationary pressures and inflation expectations, and financial and international developments.
Jerome H. Powell, Chairman; John C. Williams, Vice-Chairman; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Philip N. Jefferson; Adriana D. Kugler; and Christopher J. Waller. Voting against the issue was Beth M. Hammack, who favored keeping the target range for the federal funds rate at 4-1/2 to 4-3/4 percent.
