FOMC Raises Rates By 0.25%, Maintaining A Close Watch On Inflation

The Federal Open Market Committee decided to raise the federal funds rate target by 0.25%. The FOMC will continue to closely monitor inflation trends and the economic outlook, and will adjust its growth outlook, as needed, to maintain its dual mandate goals of maximizing employment and stability. prices.

The Fed also noted that employment has continued to grow at a moderate pace, but wage growth remains weak. In addition to raising interest rates, the Fed said it will continue to cut its balance sheet this year as it continues to gradually normalize its balance sheet. It is expected that, through the process of reducing balance sheets, interest rates will increase over time.

Federal Open Market Committee voted unanimously today to increase the target range for interest federal funds rate to a quarter of a point, and continue to closely monitor inflation in the coming months. The Committee is expected to keep interest rates at current levels until at least June 2004.

The FOMC also announced that it would maintain its holdings of long-term securities at approximately 300 billion dollars per month.