Fed issues FOMC statement and economic projections

The Federal Reserve Board has released the Federal Open Market Committee statement following its June 2024 meeting.

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. The Committee is strongly committed to returning inflation to its 2 percent objective.

The Implementation Note released with the FOMC statement indicates that the Board voted unanimously to maintain the interest rate paid on reserve balances at 5.4 percent, effective June 13, 2024; that the FOMC directs the Open Market Desk at the Reserve Bank of New York to undertake open market operations as necessary to maintain the federal funds rate in a target range of 5-1/4 to 5-1/2 percent; and that the Board voted unanimously to approve the establishment of the primary credit rate at the existing level of 5.5 percent.

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