Below is a comparison of the May 2024 rate statement to the June 2024 rate statement: There is not a lot of changes. With the dot plot only projecting one cut, it will be interesting to hear the comments from Chair Powell.
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Recent
indicators suggest that economic activity has continued to expand at a solid
pace. Job gains have remained strong, and the unemployment rate has remained
low. Inflation has eased over the past year but remains elevated. In recent
months, there has been a lack ofmodest
further progress toward the Committee's 2 percent inflation objective.
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 have moved toward better balance over the past year. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks.
In
support of its goals, the Committee decided to maintain the target range for
the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any
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 does not expect it will be appropriate to reduce the target range
until it has gained greater confidence that inflation is moving sustainably
toward 2 percent. In addition, the Committee will continue reducing its
holdings of Treasury securities and agency debt and agency mortgage‑backed
securities. Beginning in June, the Committee will slow the pace
of decline of its securities holdings by reducing the monthly redemption cap on
Treasury securities from $60 billion to $25 billion. The Committee will
maintain the monthly redemption cap on agency debt and agency mortgage‑backed
securities at $35 billion and will reinvest any principal payments in excess of
this cap into Treasury securities. The
Committee is strongly committed to 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; Philip N. Jefferson; Adriana D. Kugler; Loretta J. Mester; and Christopher J. Waller.
