The Federal Open Market Committee (FOMC) recently released its June statement, outlining key highlights and analysis for the current economic situation in the United States. The statement emphasized that economic activity has been expanding at a solid pace, with strong job gains and a low unemployment rate. While inflation has eased over the past year, it remains elevated, and there has been modest progress toward the Committee’s 2 percent inflation objective.
The Committee’s primary goals continue to be achieving maximum employment and maintaining inflation at a rate of 2 percent over the long run. In the past year, the risks to achieving these goals have moved towards better balance. However, the economic outlook remains uncertain, and the Committee remains vigilant in monitoring inflation risks.
To support its objectives, the Committee decided to keep the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. Any adjustments to this target range will be carefully assessed based on incoming data, the evolving economic outlook, and risk assessments. The Committee does not anticipate reducing the target range until there is greater confidence that inflation is moving sustainably towards 2 percent. Additionally, the Committee will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities to support its goal of returning inflation to 2 percent.
In terms of monetary policy, the Committee will closely monitor incoming information and be prepared to adjust the stance of policy if necessary. This adjustment will be made to address any emerging risks that could hinder the achievement of the Committee’s goals. The Committee’s assessments will be based on a wide range of factors, including labor market conditions, inflation pressures, inflation expectations, and financial and international developments.
The members who voted for the monetary policy action included Jerome H. Powell (Chair), John C. Williams (Vice Chair), Thomas I. Barkin, Michael S. Barr, Raphael W. Bostic, Michelle W. Bowman, Lisa D. Cook, Mary C. Daly, Philip N. Jefferson, Adriana D. Kugler, Loretta J. Mester, and Christopher J. Waller. Overall, the June FOMC statement highlights the Committee’s commitment to achieving its employment and inflation goals while remaining flexible in its approach to monetary policy adjustments.