The United States Federal Reserve's Federal Open Market Committee (FOMC) announced on Wednesday in a statement its decision to keep the federal funds rate between 4.25% and 4.5% for the fifth consecutive time.
The decision follows mixed economic signals. The Fed noted that while "swings in net exports continue to affect the data," recent data points that "growth of economic activity moderated in the first half of the year." It added that "the unemployment rate remains low, and labor market conditions remain solid," though "inflation remains somewhat elevated." The Committee reaffirmed its long-term goals of "maximum employment and inflation at the rate of 2 percent over the longer run," acknowledging that "uncertainty about the economic outlook remains elevated" and stressing its focus on "the risks to both sides of its dual mandate."
In total, nine members voted in favor of holding the federal funds rate steady, while two voted against, preferring a 25 basis point cut. One member was absent and did not vote.
