#FedKeepsRatesUnchanged

FOR IMMEDIATE RELEASE

The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve concluded its scheduled policy meeting today by announcing its unanimous decision to maintain the existing target range for the federal funds rate at [Current Range, e.g., 5.25% to 5.50%]. This decision reflects a continuation of the Committee's measured approach to monetary policy as it navigates a complex and evolving economic landscape.

In its official policy statement, the Committee noted that recent indicators suggest economic activity has continued to expand at a solid pace. Job gains have remained robust over recent months, and the unemployment rate has stayed low, reflecting ongoing strength in the labor market. However, the Committee acknowledged that inflation, while having eased over the past year, remains elevated above its longer-run 2 percent objective.

"The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent," the statement read, underscoring a data-dependent and patient posture.

In assessing the appropriate stance of monetary policy, the FOMC confirmed it will continue to monitor a wide array of incoming information, including labor market conditions, inflation pressures and expectations, and developments in the global economic and financial environment. The Committee reiterated its unwavering commitment to achieving its dual mandate from Congress: fostering maximum employment and price stability.

The Summary of Economic Projections (SEP), released alongside the statement, indicates that while progress on inflation is anticipated, the path toward the 2 percent goal is expected to be gradual. Committee participants revised their median economic projections for growth, unemployment, and inflation (as measured by Personal Consumption Expenditures) for the coming years, reflecting an updated assessment of economic conditions.

In his post-meeting press conference, Chair Jerome H. Powell emphasized the balanced risks the Committee now faces. "We are aware of the risks of moving too soon or too late," Chair Powell stated. "Today, we judged that the risks to achieving our employment and inflation goals have moved into better balance. We remain highly attentive to inflation risks and are strongly committed to returning inflation to our 2 percent objective over time."

The FOMC also confirmed it will continue reducing its holdings of Treasury securities and agency mortgage-backed securities, as described in its previously announced Plans for Reducing the Size of the Federal Reserve's Balance Sheet.

The Committee remains prepared to adjust the stance of monetary policy as warranted should emerging risks to the achievement of its goals materialize. The next scheduled FOMC meeting will be held on [Next Meeting Date, May 1-2, 2024.

About the Federal Open Market Committee:
The FOMC is the monetary policymaking body of the Federal Reserve System. It is composed of the seven members of the Board of Governors of the Federal Reserve System; the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis.