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Thursday, June 14, 2018 07.38AM / June 12-13 FOMC Meeting
Information received since the
Federal Open Market Committee met in May indicates that the labor market has
continued to strengthen and that economic activity has been rising at a solid
rate. Job gains have been strong, on average, in recent months, and the
unemployment rate has declined.
Recent data suggest that
growth of household spending has picked up, while business fixed investment has
continued to grow strongly. On a 12-month basis, both overall inflation and
inflation for items other than food and energy have moved close to 2 percent.
Indicators of longer-term inflation expectations are little changed, on
balance.
Consistent with its statutory
mandate, the Committee seeks to foster maximum employment and price stability.
The Committee expects that further gradual increases in the target range for
the federal funds rate will be consistent with sustained expansion of economic
activity, strong labor market conditions, and inflation near the Committee's
symmetric 2 percent objective over the medium term. Risks to the economic
outlook appear roughly balanced.
In view of realized and
expected labor market conditions and inflation, the Committee decided to raise
the target range for the federal funds rate to 1-3/4 to 2 percent. The stance
of monetary policy remains accommodative, thereby supporting strong labor
market conditions and a sustained return to 2 percent inflation.
In determining the timing and
size of future adjustments to the target range for the federal funds rate, the
Committee will assess realized and expected economic conditions relative to its
maximum employment objective and its symmetric 2 percent inflation objective.
This assessment will take into account a wide range of information, including
measures of labor market conditions, indicators of inflation pressures and
inflation expectations, and readings on financial and international
developments.
Voting for the FOMC monetary
policy action were Jerome H. Powell, Chairman; William C. Dudley, Vice
Chairman; Thomas I. Barkin; Raphael W. Bostic; Lael Brainard; Loretta J.
Mester; Randal K. Quarles; and John C. Williams.
Documents
·
Implementation
Note issued June 13, 2018
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