Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Monetary Policy topic
No spam. Unsubscribe anytime.
Fed Holds Rate at 3.50%–3.75% in 9–3 Vote; Chair Warsh Reaffirms 2% Goal
Summary
Chairman Warsh said the Federal Open Market Committee voted 9–3 to keep the federal funds target range at 3.50%–3.75%, reiterated commitment to a 2% inflation target and stressed that markets have tightened materially since the last meeting.
Chairman Jerome Warsh said the Federal Open Market Committee voted 9–3 to maintain the target range for the federal funds rate at 3.50% to 3.75%.
"Today, as you know, our committee decided to vote by a 9 to 3 vote to maintain the target range for the federal funds rate at 3.5 to 3.75 percent," Warsh said, adding that the committee will continue to provide ample reserves to the banking system.
Warsh framed the decision as the result of rigorous review rather than a temporary pause, saying the committee examined four broad questions about the lasting effects of recent high inflation, the impact of shocks on output and employment, price dynamics tied to supply shocks, and the role of monetary policy tools. He emphasized that inflation remains elevated relative to the committee's 2% goal and that the Fed is committed to delivering price stability.
The chair noted both nominal and real Treasury yields have risen materially in the intermeeting period, a development he described as part of the environment the committee is watching. He also said the vote reflected a majority view about the near-term course of policy even as three members dissented on timing or tactics.
The committee did not announce any change to its balance-sheet policy at the press conference. Warsh said staff task forces will continue work on data and strategy in the weeks ahead and that the committee will use forthcoming meetings to decide on further steps.
