Fed FOMC Statement: Holds Rates, Reaffirms Inflation Fight

## Fed FOMC Statement: Holds Rates Steady Topic: Fed holds rates steady, shortens statement to remove easing bias The Federal Open Market Committee approved the following statement by a vote of 12-0. The committee decided to maintain the target range for the federal funds rate at 3.5% to 3.75% to support the Fed's dual mandate. The committee also reaffirmed its policy of maintaining ample reserves in the banking system. Despite some degree of uncertainty, partly related to the Middle East conflict, economic activity continues to expand at a solid pace. Productivity growth and capital investment are robust. Employment growth keeps pace with the labor force, and the unemployment rate has changed little. Inflation remains above the committee's 2% target, partly due to supply shocks pushing up prices in certain areas, including energy. The committee stated it remains committed to achieving price stability. ## Key Points - FOMC approved statement 12-0. - Federal funds rate target range unchanged at 3.5% to 3.75%. - Economic activity expanding at solid pace; productivity growth and capital investment robust. - Employment growth keeps pace with labor force; unemployment rate little changed. - Inflation still above 2% target; Fed continues to emphasize price stability. Editor: Li Tong