The Fed's Commitment to Price Stability and Maximum Employment

📉Inflation has been easing and is expected to continue coming down, but the committee wants to ensure sustained reduction to reach the 2% goal.

💼The strong labor market and robust economic growth are positive indicators, but the focus is on returning inflation to the target rate.

📊The Federal Reserve is closely monitoring inflation expectations to ensure they remain well anchored.

📈The committee anticipates that it may be appropriate to reduce rates and begin the process of dialing back policy restraint in the future.

⚖️The decision on rate reductions will depend on data confirming sustained downward inflation and a balanced outlook for employment and inflation goals.

What is the current stance of monetary policy?

—The Federal Reserve decided to maintain the policy interest rate and continue reducing its securities holdings.

What are the recent economic developments?

—Recent indicators suggest solid economic expansion with strong consumer demand and improving supply conditions.

What is the state of the labor market?

—The labor market remains tight, with ongoing progress in job creation and an increase in labor force participation.

What are the current inflation levels?

—Inflation has eased but remains above the long-term goal. Core prices, excluding food and energy, rose 2.9% over the past year.

What is the Fed's commitment regarding inflation and employment?

—The Federal Reserve is fully committed to returning inflation to the 2% goal, which is essential for achieving maximum employment and price stability.

00:01The Federal Reserve remains focused on promoting maximum employment and price stability.

02:55The labor market continues to tighten, but supply and demand conditions are coming into better balance.

06:48The Federal Reserve is committed to achieving maximum employment and price stability through its monetary policy.

11:09There is an expectation that rates may be reduced in the future, but the decision is contingent on further evidence of sustained downward inflation.

11:58The committee wants to achieve greater confidence in sustained inflation reduction before dialing back policy restraint.

12:38The Federal Reserve does not rely solely on tailor rules and consults a range of measures when setting policy.