IInformation received since the Federal Open Market Committee met in June indicates that the labor market remains strong and that economic activity has increased at a moderate pace.
On average, jobs have been good in recent months and unemployment has remained low.
Although the growth in family spending has improved from earlier in the year, the growth in business investment has been soft.
On the basis of 12 months, total inflation and inflation for items other than food and energy are below 2 percent.
Market-based measures for inflation compensation remain low; Little survey-based measures for long-term inflation expectations have changed.
In accordance with its legal mandate, the Committee strives for maximum employment and price stability.
In the light of the implications of global developments for the economic outlook and moderate inflationary pressures, the Committee decided to reduce the target range for the federal funds rate to 2 to 2-1 / 4 percent.
This action supports the Committee's view that sustainable expansion of economic activity, strong labor market conditions and inflation near the 2% symmetrical target are the most likely results, but uncertainties remain about these prospects.
Considering the future path of the target range for the federal funds rate, the Committee will continue to follow the implications of incoming information for the economic outlook and will take appropriate measures to support expansion, with a strong labor market and inflation in place. near the symmetrical 2 percent target.
When determining the timing and extent of future adjustments to the target range for the federal fund rate, the Committee will assess the realized and expected economic conditions in relation to its maximum employment target and its symmetrical inflation target of 2 percent.
This assessment will take into account a wide range of information, including measurements of labor market conditions, indicators of inflationary pressures and inflation expectations, and lectures on financial and international developments.
The committee will complete the reduction of its total holdings on the System Open Market Account in August, two months earlier than previously indicated.
Votes for the monetary policy action were Jerome H. Powell, chairman; John C. Williams, vice chairman; Michelle W. Bowman; Lael Brainard; James Bullard; Richard H. Clarida; Charles L. Evans; and Randal K. Quarles.
The vote was against Esther L. George and Eric S. Rosengren, who at this meeting preferred to maintain the target range for federal funds at 2-1 / 4 to 2-1 / 2 percent.
. [TagsToTranslate] Dailymail