Text of the policy statement the Federal Reserve released Wednesday
WASHINGTON — Below is the statement the Fed released on Wednesday after the policy meeting ended:
Recent indicators suggest that economic activity growth has slowed from the strong pace in the third quarter. Job growth has moderated since earlier this year but remains strong and the unemployment rate has remained low. Inflation has decreased over the past year, but remains high.
The US banking system is healthy and resilient. Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, employment and inflation. The magnitude of these effects remains uncertain. The Committee remains very alert to inflation risks.
The Committee aims for maximum employment and inflation of 2 percent in the longer term. In support of these goals, the committee has decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. The Committee will continue to assess additional information and its implications for monetary policy.
In determining the extent of any additional policy reinforcement that may be appropriate to reduce inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy is affecting economic activity and affects inflation, and economic and financial developments. In addition, the Commission will continue to reduce its holdings of government bonds, sovereign debt and mortgage-backed securities, as described in its previously announced plans. The Committee is determined to return inflation to the 2 percent target.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as necessary if risks emerge that could hinder the achievement of the Committee's objectives. The Committee's assessments will take into account a wide range of information, including data on labor market conditions, inflationary pressures and expectations, and financial and international developments.
Voting in favor of the monetary policy action were Jerome H. Powell, chairman; John C. Williams, vice chairman; Michael S Barr; Michelle W. Bowman; Lisa D. Cook; Austan D. Goolsbee; Patrick Harker; Philip N. Jefferson; Neel Kashkari; Adriana D. Kugler; Lorie K. Logan; and Christopher J. Waller.