Svmuu reported that the Federal Reserve's decision shows recent indicators point to economic activity expanding at a solid pace. Job gains have been somewhat weak, and the unemployment rate has changed little in recent months. Inflation remains elevated, partly reflecting recent increases in global energy prices.
The Committee is committed to achieving maximum employment in the long run and keeping inflation at a 2% level. Developments in the Middle East are amplifying uncertainty surrounding the economic outlook. The Committee is closely monitoring the risks facing both sides of its dual mandate.
To support these goals, the Committee decided to maintain the target range for the federal funds rate at 3.5%-3.75%. In considering the magnitude and timing of further adjustments to this target range, the Committee will carefully assess the latest data, evolving outlook, and the balance of risks. The Committee is firmly committed to supporting maximum employment and returning inflation to its 2% objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. If risks emerge that could impede the achievement of the Committee's goals, it is prepared to adjust the stance of monetary policy as appropriate. The Committee's assessments will take into account a wide range of information, including labor market conditions, inflation pressures and inflation expectations, as well as financial and international developments.