FOMC STATEMENT: Rates unchanged at 3.50-3.75%, as expected; voted 8-4 to hold rates (Miran voted for a 25bps rate reduction; Hammack, Kashkari, Logan dissented on easing bias in statement)

RATE DECISION

• Fed holds target range for federal funds rate at 3.50-3.75%
• Eight voted to hold rates unchanged; one (Miran) voted to cut by 25bps; three (Hammack, Kashkari, Logan) voted to hold but opposed inclusion of easing bias in statement

DISSENT DETAILS

• Miran preferred to lower target range by 25bps at this meeting
• Hammack, Kashkari, Logan supported holding rates but did not support inclusion of an easing bias in the statement at this time

FORWARD GUIDANCE

• Fed says in considering extent and timing of additional adjustments, Committee will carefully assess incoming data, the evolving outlook, and the balance of risks
• Committee would be prepared to adjust stance of monetary policy if risks emerge that could impede attainment of its goals
• Assessments will take into account labour market conditions, inflation pressures and inflation expectations, and financial and international developments

LABOUR MARKET

• Fed notes job gains have remained low on average; unemployment rate little changed in recent months
• Committee seeks to achieve maximum employment

INFLATION

• Fed says inflation is elevated, in part reflecting recent increase in global energy prices
• Committee strongly committed to returning inflation to 2% objective

BALANCE OF RISKS

• Fed notes Middle East developments are contributing to a high level of uncertainty about the economic outlook
• Committee says it is attentive to risks to both sides of its dual mandate