2026-01-28 18:40:00
The FOMC decision is coming up at the top of the hour.
Here was what it said in December.
Available indicators suggest that economic activity has been
expanding at a moderate pace. Job gains have slowed this year, and the
unemployment rate has edged up through September. More recent indicators
are consistent with these developments. Inflation has moved up since
earlier in the year and remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at
the rate of 2 percent over the longer run. Uncertainty about the
economic outlook remains elevated. The Committee is attentive to the
risks to both sides of its dual mandate and judges that downside risks
to employment rose in recent months.
In support of its goals and in light of the shift in the balance of
risks, the Committee decided to lower the target range for the federal
funds rate by 1/4 percentage point to 3-1/2 to 3‑3/4 percent. In
considering the extent and timing of additional adjustments to the
target range for the federal funds rate, the Committee will carefully
assess incoming data, the evolving outlook, and the balance of risks.
The Committee is strongly committed to supporting maximum employment and
returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee
will continue to monitor the implications of incoming information for
the economic outlook. The Committee would be prepared to adjust the
stance of monetary policy as appropriate if risks emerge that could
impede the attainment of the Committee’s goals. The Committee’s
assessments will take into account a wide range of information,
including readings on labor market conditions, inflation pressures and
inflation expectations, and financial and international developments.
The Committee judges that reserve balances have declined to ample
levels and will initiate purchases of shorter-term Treasury securities
as needed to maintain an ample supply of reserves on an ongoing basis.
Voting for the monetary policy action were Jerome H. Powell, Chair;
John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan
M. Collins; Lisa D. Cook; Philip N. Jefferson; Alberto G. Musalem; and
Christopher J. Waller. Voting against this action were Stephen I. Miran,
who preferred to lower the target range for the federal funds rate by
1/2 percentage point at this meeting; and Austan D. Goolsbee and Jeffrey
R. Schmid, who preferred no change to the target range for the federal
funds rate at this meeting.
This article was written by Adam Button at investinglive.com.
