~~May 07~~,
2025

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EDT

Although swings in net exports have affected the data,
recent indicators suggest that economic activity has continued to expand at a
solid pace. The unemployment rate has stabilized at
a low level in recent months,
and labor market conditions remain solid. Inflation remains somewhat elevated.

The Committee seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. Uncertainty about the
economic outlook has ~~increased further.~~ The Committee is attentive to the risks to both
sides of its dual mandate and judges that the risks of higher unemployment
and higher inflation have risen.

In support of its goals, the Committee decided to maintain
the target range for the federal funds rate at 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; Michael S. Barr; Michelle W. Bowman; Susan
M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Neel
Kashkari; Adriana D. Kugler; Alberto G. Musalem; and Christopher J. Waller. Neel Kashkari
voted as an alternate member at this meeting.

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