March 20, 2024

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EDT

Recent indicators suggest that economic activity has been expanding 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.

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 moving into better balance. 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, as described in its previously announced plans. 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.

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The January 2024 and March 2024 FOMC statements are nearly identical, with both maintaining the federal funds rate target range at 5-1/4 to 5-1/2 percent, highlighting solid economic expansion, strong job gains, low unemployment, and elevated but easing inflation. Both statements emphasize the Federal Reserve's commitment to achieving maximum employment and a 2 percent inflation rate, noting that the risks to these goals are becoming more balanced, though the economic outlook remains uncertain with close attention to inflation risks.

Key points that remained consistent include:

  • The maintenance of the target range for the federal funds rate.
  • The ongoing reduction of the Federal Reserve's holdings of Treasury securities and agency debt and mortgage-backed securities.
  • A commitment to carefully assess incoming data, the evolving economic outlook, and the balance of risks before making any adjustments to the federal funds rate.
  • A statement that it would not be appropriate to reduce the target range until there is greater confidence that inflation is moving sustainably toward 2 percent.
  • Continued monitoring of a wide range of information, including labor market conditions, inflation pressures and expectations, and financial and international developments, to adjust the policy stance as needed.

The composition of voting members for the monetary policy action also remained unchanged between January and March 2024, with Jerome H. Powell as Chair and John C. Williams as Vice Chair, among others.