Fed holds rates steady for 4th consecutive time

Federal Reserve headquarters

The Federal Reserve kept interest rates unchanged for the fourth consecutive time in the meeting held today, June 18, as widely expected. The US central bank slashed rates by a total of 100 basis points over the last three meetings of the previous year.

According to its statement, the Federal Open Market Committee (FOMC) members unanimously agreed to maintain the federal funds rate target range at 4.25%–4.50%.

Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.

FOMC seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. Uncertainty about the economic outlook has diminished but remains elevated. The committee is attentive to the risks to both sides of its dual mandate.

In considering the extent and timing of additional adjustments to the target range for the federal funds rate, FOMC will carefully assess incoming data, the evolving outlook, and the balance of risks.

It 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% objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook.

FOMC 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.

 It would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of FOMC’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.