Full text of the Federal Reserve statement: 25 basis points interest rate cut, no one voted against

特邀专栏作者

2024-11-08 02:42

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The Fed cut interest rates by 25 basis points as expected, and the wording of the policy statement remained basically unchanged, without sending a clear signal about future rate cuts. Focus on Powell's statement at the press conference.

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On November 8, the Federal Reserve announced a 25 basis point rate cut to 4.5%-4.75%, in line with market expectations. This time the decision was unanimous, and the wording of the policy statement remained basically unchanged, continuing to emphasize the close attention to the risks of the dual goals, but deleting the sentence "more confident that inflation is moving sustainably towards the goal", without sending a clear signal about future rate cuts, nor commenting on the results of the US election in any way.

Full text of the Federal Reserve policy statement

The latest indicators suggest that economic activity continues to expand at a solid pace. Labor market conditions have generally eased somewhat so far this year, with the unemployment rate rising but remaining low. Inflation is approaching the Committee's 2 percent objective but remains slightly above target.

The Committee's objectives are to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are roughly balanced. The economic outlook remains uncertain, and the Committee is closely monitoring risks to its dual objectives.

To support its goals, the Committee decided to lower the target range for the federal funds rate by 25 basis points to 4.5 percent to 4.75 percent. The Committee will carefully assess emerging data, changes in the economic outlook, and the balance of risks as it considers further adjustments to the target range for the federal funds rate. The Committee will also continue to reduce the size of its holdings of Treasury securities, agency debt, and agency mortgage-backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent goal.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. If risks emerge that impede the Committee's achievement of its goals, the Committee will adjust the stance of monetary policy as appropriate. The Committee's assessments will take into account a wide range of information, including labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Members voting in favor of this monetary policy action included Chairman Jerome Powell, Vice Chairman John Williams, Thomas Barkin, Michael Barr, Raphael Bostic, Michelle Bowman, Lisa Cook, Mary Daly, Beth Hammack, Philip Jefferson, Adrienne Kugler, and Christopher Waller.