December 18, 2024
Fed releases FOMC statement
Scheduled for release at 2pm ET
Recent indicators suggest that economic activity continues to expand at a solid pace. Since the beginning of this year, labor market conditions have generally eased, and although the unemployment rate has increased, it remains at a low level. Inflation is making progress toward the Committee’s target of 2%, but remains moderately high.
In the long term, the committee aims to achieve maximum employment and an inflation rate of 2%. The Committee judges that the risks to achieving the employment and inflation targets are approximately balanced. The economic outlook is uncertain, and the Committee is mindful of the risks on both sides of its dual mandate.
In support of that goal, the Committee decided to reduce the target range for the federal funds rate by one-quarter of a percentage point to 4-1/4 to 4-1/2 percent. In considering the extent and timing of further adjustments to the target range for the federal funds rate, the Committee carefully evaluates available data, evolving prospects, and the balance of risks. The Committee will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities. The Committee supports maximum employment and is strongly committed to returning inflation to its 2% target.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the impact of incoming information on the economic outlook. The Committee stands ready to make appropriate adjustments to its monetary policy stance should any risks arise that impede the Committee’s achievement of its objectives. The Committee’s assessment takes into account a wide range of information, including readings about labor market conditions, inflation pressures and expectations, and financial and international developments.
Chairman Jerome H. Powell voted in favor of the monetary policy measure. John C. Williams, Vice-Chairman. Thomas I. Birkin. Michael S. Barr; Rafael W. Bostic. Michelle W. Bowman. Lisa D. Cook. Mary C. Daly. Philip N. Jefferson. Adrianna D. Kugler. and Christopher J. Waller. The vote against the measure was Beth M. Hammack, who wanted to maintain the target range for the federal funds rate at 4-1/2 to 4-3/4 percent.
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Implementation Note Published December 18, 2024
Last updated: December 18, 2024
