A comparison of the December 2024 statement to the November 2024 statement

November 07December 18,
2024

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 earlier in the year, labor market
conditions have generally eased, and the unemployment rate has moved up but
remains low. 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 lower the
target range for the federal funds rate by 1/4 percentage point to 4-1/24
to 4-3/41/2
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; Lisa D. Cook; Mary C. Daly; Beth M. Hammack;
Philip N. Jefferson; Adriana D. Kugler; 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.