Federal Reserve issues FOMC statement

The Federal Reserve held its key interest rate steady at 3.5% to 3.75% on Wednesday, citing elevated inflation and economic uncertainty from Middle East developments [1]. The Federal Open Market Committee (FOMC) announced its decision to maintain the target range for the federal funds rate, as economic activity continues to expand at a solid pace [1]. The central bank noted that job gains have remained low on average and the unemployment rate has been little changed in recent months [1]. Inflation remains elevated, partly due to recent increases in global energy prices [1]. The Committee reaffirmed its longer-run goal of achieving maximum employment and inflation at a rate of 2 percent [1]. Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook, and the Committee stated it is attentive to risks to its dual mandate [1]. In considering future policy adjustments, the FOMC will assess incoming data, the evolving outlook, and the balance of risks [1]. The vote was not unanimous. Jerome H. Powell, Chair, and seven other members voted for the action [1]. Stephen I. Miran voted against, preferring to lower the target range by a quarter percentage point [1]. Three members—Beth M. Hammack, Neel Kashkari, and Lorie K. Logan—supported maintaining the rate but opposed including an easing bias in the statement [1].