— Four Dissents, Three of Which Opposed Inclusion of Easing Basis; Miran Wanted Rate Cut
WASHINGTON (MaceNews) – The following is Wednesday afternoon’s policy statement from the Federal Open Market Committee:
Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, on average, and the unemployment rate has been little changed in recent months. Inflation is elevated, in part reflecting the recent increase in global energy prices.
The Committee seeks to achieve maximum employment and inflation at the rate of
2 percent over the longer run. Developments in the Middle East are contributing to a high level
of uncertainty about the economic outlook. The Committee is attentive to the risks to both sides
of its dual mandate.
In support of its goals, the Committee decided to maintain the target range for the federal
funds rate at 3‑1/2 to 3‑3/4 percent. In considering the extent and timing of additional
adjustments to the target range for the federal funds rate, the Committee will carefully assess
incoming data, the evolving outlook, and the balance of risks. 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 as appropriate if risks emerge that
could impede the attainment of the Committee’s goals. The Committee’s assessments will take
into account a wide range of information, including readings on labor market conditions,
inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams,
Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Philip N. Jefferson; Anna
Paulson; and Christopher J. Waller. Voting against this action were Stephen I. Miran, who
preferred to lower the target range for the federal funds rate by 1/4 percentage point at this
meeting; and Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, who supported
maintaining the target range for the federal funds rate but did not support inclusion of an easing
bias in the statement at this time.