Keeping the base interest rate in the target range of 2.00% -2.25%, the Federal Committee for the Open Market of the US Federal Reserve gave a comment on the state of the economy and monetary policy.
The Fed notes a vigorous growth in economic activity and a further improvement in the labor market situation due to the average growth in jobs in recent months and a decrease in unemployment.
Moreover, they noted that the period between commission meetings and household spending continued to increase significantly while the expansion of investments by business structures slowed compared with more forced rates earlier this year.
The Fed still assesses long-term inflation expectations as stable. At the same time, general inflation and core inflation calculated on a 12-month basis, not taking into account energy and food prices, remain close to 2%.
In accordance with its authority, the Fed is committed to promote maximum employment and price stability. They still expect a further gradual increase in the target interest rate range for federal funds to be conducted in line with a steady increase in economic activity, a stronger labor market and inflation close to the symmetrical 2% target level designated by the Fed in the medium term. Risks for economic prospects look quite balanced.
Taking into account the already achieved and expected parameters of the state of the labor market and inflation, the Fed decided to keep the target interest rate range for federal funds at 2.00% -2.25%.
In determining the timing and scale of the future regulation of the target interest rate range for federal funds, the Fed will be guided by both achieved and expected economic progress in relation to its goals of maximum employment and symmetric inflation at 2%. This approach will be based on a wide range of information, including parameters of labor market conditions, indicators of inflationary pressure and inflation expectations, financial and international events.
The current monetary policy framework was adopted unanimously by 9 members of the US Federal Reserve.
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