Recent indicators suggest that the economy continues to expand at a solid pace, with job gains remaining robust and the unemployment rate holding steady at low levels. Although inflation has eased over the past year, it remains elevated. The Federal Reserve has noted modest progress towards its 2 percent inflation target in recent months.

The Federal Reserve’s primary goals are to achieve maximum employment and maintain inflation at 2 percent over the long term. The Committee believes that the risks to these objectives have become more balanced over the past year. Despite this progress, the economic outlook remains uncertain, and the Committee is highly vigilant regarding inflation risks.

To support these objectives, the Federal Reserve has decided to maintain the target range for the federal funds rate at 5.25 to 5.5 percent. The Committee will carefully evaluate incoming data, the evolving economic outlook, and the balance of risks before making any adjustments to this rate. The Committee does not foresee a reduction in the target range until there is greater confidence that inflation is moving sustainably towards the 2 percent goal. Additionally, the Federal Reserve will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities. The Committee remains strongly committed to returning inflation to its 2 percent target.

In determining the appropriate stance of monetary policy, the Committee will monitor incoming information and its implications for the economic outlook. The Committee is prepared to adjust monetary policy as needed if risks arise that could hinder the achievement of its goals. The Committee’s evaluations will consider a broad range of information, including labor market conditions, inflation pressures and expectations, and financial and international developments.

The decision to maintain the current monetary policy was supported by Jerome H. Powell, Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Philip N. Jefferson; Adriana D. Kugler; Loretta J. Mester; and Christopher J. Waller.