Text of the policy statement the Federal Reserve released Wednesday

WASHINGTON — Below is the statement the Federal Reserve released Wednesday after its latest policy meeting concluded:

Recent indicators suggest that economic activity has continued to grow at a solid pace. Employment has slowed and the unemployment rate has increased, but remains low. Inflation has advanced further towards the Committee’s 2 percent target, but remains somewhat elevated.

The Committee aims to achieve maximum employment and inflation at a rate of 2 per cent over the longer term. The Committee has become more confident that inflation is moving towards 2 per cent on a sustained basis and judges that the risks to the achievement of its employment and inflation targets are broadly balanced. The economic outlook is uncertain and the Committee is alert to the risks on both sides of its dual mandate.

In light of progress on inflation and the balance of risks, the Committee decided to reduce the target range for the federal funds rate by 1/2 percentage point to 4-3/4 to 5 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the changing outlook, and the balance of risks. The Committee will continue to reduce its holdings of Treasury and agency debt and agency mortgage-backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

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 if risks emerge that could hamper the achievement of the Committee’s objectives. The Committee’s assessments will take into account a wide range of information, including measures of labour market conditions, inflationary pressures and expectations, and financial and international developments.

The votes on monetary policy were cast by Jerome H. Powell, Chairman; John C. Williams, Vice Chairman; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Lisa D. Cook; Mary C. Daly; Beth M. Hammack; Philip N. Jefferson; Adriana D. Kugler; and Christopher J. Waller.

Michelle W. Bowman voted against this measure, preferring to lower the target for the federal funds rate by 1/4 percentage point at this meeting.