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June 14, 2023

Federal Reserve releases FOMC statement

For release at 2:00 PM EDT

Recent indicators suggest that economic activity continues to expand at a modest pace. Job gains have strengthened in recent months, and the unemployment rate remains low. Inflation persists.

The US banking system is strong and resilient. The tighter credit conditions for households and businesses are likely to have an impact on economic activity, hiring and inflation. The extent of these effects remains uncertain. The Committee remains extremely vigilant to inflation risks.

The committee seeks to achieve maximum employment and inflation at 2 percent in the long run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5 to 5-1/4 percent. Keeping the target range constant at this meeting allows the Committee to assess additional information and its implications for monetary policy. In determining the extent of additional policy setting appropriate to bring inflation back to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the degree to which monetary policy affects economic activity and inflation, and the extent to which economic and financial Events. In addition, the Committee will continue to reduce its holdings of Treasury securities and agency loans and agency mortgage-backed securities, as described in its previously announced plans. The Committee remains firmly committed to returning inflation to its target of 2 per cent.

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In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the effects of incoming information on the economic outlook. The Committee will be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the achievement of the Committee’s objectives. The Committee’s assessment will take into account a wide range of information, including labor market conditions, inflationary pressures and inflation expectations, and financial and international developments.

Jerome H. Powell, Chairman, voting for monetary policy action; John C. Williams, Vice President; Michael S. Barr; Michelle W. Bowman; Lisa D. cook; Austin D. Golsby; Patrick Harker; Philip Ann Jefferson; Neel Kashkari; Laurie’s Logan; and Christopher J. Waller.

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Implementation Note issued on June 14, 2023

Last Updated: June 14, 2023