Fed FOMC statement holds rates, inflation still above target

The FOMC approved the following statement by a vote of 12 in favor, 0 opposed.

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 a degree of uncertainty, partly attributable to the Middle East conflict, economic activity has been expanding at a solid pace. Productivity growth and capital investment are robust. Job gains have kept pace with labor force growth, and the unemployment rate has moved little.

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