A comparison of the December 2024/January 2025 FOMC statements

December 18, 2024

January 29, 2025

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EST

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Recent indicators suggest that economic activity has
continued to expand at a solid pace. Since earlierThe
unemployment rate has stabilized at a low level in the
year, recent months, and labor market
conditions have generally eased, and the unemployment rate has
moved up but remains low.remain solid.
Inflation has made progress toward the Committee’s 2 percent
objective but remains somewhat elevated.

The Committee seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. The Committee judges
that the risks to achieving its employment and inflation goals are roughly in
balance. The economic outlook is uncertain, and the Committee is attentive to
the risks to both sides of its dual mandate.

In support of its goals, the Committee decided to lowermaintain
the target range for the federal funds rate by 1/4 percentage
point toat 4-1/4 to 4-1/2 percent. In
considering the extent and timing of additional adjustments to the target range
for the federal funds rate, the Committee will carefully assess incoming data,
the evolving outlook, and the balance of risks. The Committee will continue
reducing its holdings of Treasury securities and agency debt and agency
mortgage‑backed securities. The Committee is strongly committed to supporting
maximum employment and returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the
Committee will continue to monitor the implications of incoming information for
the economic outlook. The Committee would be prepared to adjust the stance of
monetary policy as appropriate if risks emerge that could impede the attainment
of the Committee’s goals. The Committee’s assessments will take into account a
wide range of information, including readings on labor market conditions,
inflation pressures and inflation expectations, and financial and international
developments.

Voting for the monetary policy action were Jerome H. Powell,
Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael
S. Barr; Raphael W. Bostic; Michelle W. Bowman;
Susan M. Collins; Lisa D. Cook; Mary
C. DalyAustan D. Goolsbee; Philip N.
Jefferson; Adriana D. Kugler; Alberto G.
Musalem; Jeffrey R. Schmid; and Christopher J. Waller.
Voting against the action was Beth M. Hammack, who preferred to maintain the
target range for the federal funds rate at 4-1/2 to 4-3/4 percent.

This article was written by Greg Michalowski at www.forexlive.com.