Fed FOMC Statement Holds Rates Steady, Signals Macro Positives

The Federal Open Market Committee (FOMC) approved its latest statement by a vote of 12 to 0, deciding to maintain the target range for the federal funds rate at 3.5% to 3.75%.

The committee reaffirmed its commitment to maintaining ample reserve levels in the banking system to support the Fed's dual mandate.

The statement noted that despite some degree of uncertainty, partly due to the Middle East conflict, economic activity has been expanding at a solid pace. Productivity growth and capital investment have been strong, job growth has kept pace with the labor force, and the unemployment rate has moved little.

Inflation remains above the Committee's 2% objective, partly due to supply shocks pushing up prices in some areas including energy. The Committee said it remains committed to achieving price stability.