The Fed: Text of June FOMC meeting

Wall Street expected the Federal Reserve to raise interest rates in June and that’s exactly what the central bank did as part of an effort to keep the economy stable.

Read: Fed lifts U.S. interest rates, now sees four moves this year

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.

Filed in: Top News Tags: 

You might like:

The Wall Street Journal: Symantec targeted by Starboard for five board seats The Wall Street Journal: Symantec targeted by Starboard for five board seats
The Wall Street Journal: Venezuelan government uses bonds to pay settlement with miner The Wall Street Journal: Venezuelan government uses bonds to pay settlement with miner
Metals Stocks: Gold firms but remains pinned below closely watched $1,200 mark Metals Stocks: Gold firms but remains pinned below closely watched $1,200 mark
Cannabis company Canopy Growth’s stock soars 30% as Corona brewer increases stake Cannabis company Canopy Growth’s stock soars 30% as Corona brewer increases stake
Currencies: Turkish lira aims for third straight gain against the dollar Currencies: Turkish lira aims for third straight gain against the dollar
Jeff Reeves's Strength in Numbers: ‘America first’ — U.S. stock market outpaces global competitors Jeff Reeves's Strength in Numbers: ‘America first’ — U.S. stock market outpaces global competitors
NerdWallet: Everything single parents need to know about life insurance NerdWallet: Everything single parents need to know about life insurance
Want to make over $100,000? Try gazing at the stars (seriously) Want to make over $100,000? Try gazing at the stars (seriously)

Leave a Reply

Submit Comment
© 9559 Stock Investors News. All rights reserved. XHTML / CSS Valid.