FOMC Statement

January 31, 2018

The Federal Open Market Committee as assumed by  market players decided to keep its 1.25-1.50% federal funds target range unchanged and did so by a unanimous 9-0 vote in the last meeting to be chaired by Janet Yellen. A statement released today at 19:00 GMT characterizes the labor market as improving, economic growth as solid, the jobless rate as low, inflation as still below the 2% target, and expected inflation as low. Forward guidance did not depart from previous revelations:

The Committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal. The Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate; the federal funds rate is likely
to remain, for some time, below levels that are expected to prevail in the longer run.

The statement also notes that “the stance of monetary policy remains accommodative, thereby
supporting strong labor market conditions and a sustained return to 2 percent inflation.”

Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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