FOMC STATEMENT: Rates kept unchanged at 3.50-3.75%, as expected; vote split 10-2 (Miran and Waller called for 25bps rate cut)

RATE DECISION

• Maintains federal funds target range at 3.50-3.75%.

VOTE SPLIT

• Ten voted to maintain rates; two voted for a 25bps rate cut (MIRAN, WALLER).

DISSENT DETAILS

• Miran and Waller preferred lowering the federal funds target range by 25bps at this meeting.

FORWARD GUIDANCE

• Will assess incoming data, the evolving outlook, and the balance of risks when considering further rate adjustments.
• Will monitor labour market conditions, inflation pressures and expectations, and financial and international developments.
• Prepared to adjust the stance of monetary policy if risks emerge impeding goal attainment.

OUTLOOK FOR INTEREST RATES

• Says future policy adjustments depend on incoming information and risk developments.

LABOUR MARKET

• Notes job gains have remained low and unemployment shows signs of stabilisation.

INFLATION

• Says inflation remains somewhat elevated; reaffirms commitment to 2% objective.

GDP GROWTH

• Says economic activity has been expanding at a solid pace.

BALANCE OF RISKS

• Notes uncertainty about the economic outlook remains elevated; attentive to risks to both sides of the mandate.