Recent signs show that things are looking good overall, with economic activities growing steadily. While job gains have slowed a bit, they're still strong, and the unemployment rate is low. Even though inflation has gone down a bit, it's still higher than usual.
Committee's Goals and Challenges:
There's a group called the Committee, and they want to make sure there are enough jobs for everyone and that prices don't rise too quickly. They aim to have maximum employment and keep inflation around 2 percent in the long run. The Committee thinks the risks of not meeting these goals are getting more balanced, but they're keeping a close eye on things because the future is uncertain, especially when it comes to inflation risks.
What the Committee Decided:
To help meet their goals, the Committee decided to keep a key interest rate (federal funds rate) between 5-1/4 to 5-1/2 percent. They'll only change this if they see inflation moving steadily towards 2 percent. They're also doing other things, like selling some financial assets, to bring inflation back to their target.
Monitoring and Adjusting:
The Committee is watching closely for any new information that might affect the economy. If there are risks that could make it hard to reach their goals, they're ready to change their plans. They're looking at things like job market conditions, inflation pressures, expectations, and global developments.
The decision on what to do about the economy involved a vote from important people, including Jerome H. Powell (Chair) and John C. Williams (Vice Chair).
Contact for Questions:
If you have questions about this, you can reach out to them by emailing media@frb.gov or calling 202-452-2955. They're here to help explain what's happening in the economy in a way that makes sense for everyone.
