Full text of the Federal Reserve's decision: Holding steady for the third consecutive time but increasing divisions

Source: Zheng Yao

On April 30, Beijing time, the Federal Reserve kept the benchmark interest rate unchanged at 3.50%-3.75%, marking the third consecutive meeting without action, in line with market expectations. The FOMC passed the resolution with a vote of 8 to 4, with Miran voting against it, supporting a 0.25 percentage point rate cut; Hammack, Kashkari, and Logan voted against it, opposing the inclusion of future easing tendencies in the statement.

Full Text of the Interest Rate Decision

Recent indicators suggest that economic activity is expanding at a steady pace. Employment growth has generally been weak, and the unemployment rate has not changed much in recent months. Inflation levels remain high, partly reflecting the recent rise in global energy prices.

The committee is committed to achieving full employment over the long term and maintaining inflation at a level of 2%. The developments in the Middle East are exacerbating the uncertainty surrounding the economic outlook. The committee is closely monitoring the risks facing its dual mandate.

To support these goals, the committee decided to maintain the target range for the federal funds rate at 3.5%-3.75%. In considering the magnitude and timing of any further adjustments to this target range, the committee will carefully assess the latest data, changes in the outlook, and the balance of risks. The committee is firmly committed to supporting full employment and restoring the inflation rate to the 2% target.

In assessing the appropriate monetary policy stance, the committee will continue to pay attention to how newly acquired information affects the economic outlook. If risks emerge that could impede the committee's goals, the committee is prepared to adjust the monetary policy stance as necessary. The committee's assessment will take into account a wide range of information, including labor market conditions, inflation pressures and expectations, as well as developments in financial and international conditions.

The committee members voting in support of this monetary policy action include: Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Philip N. Jefferson; Anna Paulson; Christopher J. Waller.

The committee members opposing this action include: Stephen I. Miran, who favored a 0.25 percentage point reduction in the federal funds rate target range at this meeting; as well as Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, who support maintaining the federal funds rate target range unchanged but do not support the inclusion of easing tendencies in the current statement.