Federal Reserve System (USA)
Media Release, Jun 13, 2018
Funds Rate: 1.75 - 2.00 % (+ 0.25)
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.
Link to Fed: