FOMC Summary of Economic Projections

Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee's 2 percent objective but remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate. In support of its goals, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/4 to 4-1/2 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 will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. 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. Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Philip N. Jefferson; Adriana D. Kugler; and Christopher J. Waller. Voting against post: FOMC Cuts Rates By 25Bps; Target Range Stand At 4.25% - 4.50% - Cut Interest On Reserves Balances By 25Bps To 4.40% $DXY $USDJPY #FOMC post: FED SAYS CLEVELAND'S HAMMACK DISSENTED IN FAVOR OF NO RATE CUT post: FOMC STATEMENT COMPARE pic.twitter.com/Rslj3pns1T

post: FED CHAIR POWELL: SQUARELY FOCUSED ON TWO GOALS || SAYS ECONOMY STRONG || SAYS LABOR MARKET REMAINS SOLID || SAYS INFLATION MUCH CLOSER TO 2% GOAL post: FED'S POWELL: THE LABOR MARKET HAS COOLED FROM OVERHEATED STATE. post: POWELL: HOUSING ACTIVITY HAS BEEN WEAK post: POWELL: LABOR MARKET NOT A SOURCE OF INFLATION PRESSURES post: FED'S POWELL: TOTAL PCE PROBABLY ROSE 2.5% IN THE 12 MONTHS ENDING IN NOVEMBER.