Fed FOMC Statement Keeps Interest Rate Unchanged, Inflation Still Above Target

The Federal Reserve's Federal Open Market Committee approved the following statement by a vote of 12 to 0:

In support of the Fed's dual mandate, the Committee decided to maintain the target range for the federal funds rate at 3.5% to 3.75%. The Committee reiterated its policy of maintaining ample reserve levels in the banking system.

Despite some degree of uncertainty (partly attributable to conflicts in the Middle East), economic activity continues to expand at a solid pace. Productivity growth and capital investment performed strongly. Employment growth has kept pace with the labor force size, and the unemployment rate has changed little.

Inflation remains above the Committee's 2% target, partly due to supply shocks driving price increases in certain sectors including energy. The Committee is committed to achieving price stability.