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Fed FOMC Statement: Holds Rates Steady, Inflation Still Above Target

Fed FOMC Statement: Holds Rates Steady, Inflation Still Above Target

Fed FOMC Statement: Holds Rates Steady, Inflation Still Above Target

The Federal Open Market Committee voted 12-0 to approve the release of the following statement:

To support the Fed's dual mandate, the Committee decided to keep the target range for the federal funds rate unchanged at 3.5% to 3.75%. The Committee reaffirmed its policy of maintaining ample reserve levels in the banking system.

Despite some uncertainties, partly attributable to the Middle East conflict, economic activity continues to expand at a solid pace. Productivity growth and capital investment have been strong. Job growth has kept pace with the size of the labor force, and the unemployment rate has changed little.

Inflation remains above the Committee's 2% target, partly due to supply shocks that have boosted prices in some sectors, including energy. The Committee is committed to achieving price stability.

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