The Fed kept rates unchanged at the September 2023 meeting.
Highlights:
- Target rate 5.25% – 5.5%
- 2023 end of year target rate: 5.6%, unchanged from June
- 2024 end of year target rate: 5.10% from 4.6% in June
- Economic activity has been growing steadily.
- Job gains have decelerated but remain robust; unemployment is low.
- Inflation is currently high.
- The U.S. banking system is stable and robust.
- Stricter credit conditions may impact economic activity, employment, and inflation.
- The exact impact of these conditions is still uncertain.
- The Committee is highly focused on inflation risks.
- The Committee's goals are maximum employment and a 2% inflation rate over the long term.
- The target range for the federal funds rate is set at 5-1/4 to 5-1/2 percent.
- The Committee will evaluate further information and its implications for monetary policy.
- Factors considered for policy adjustments include the overall tightening of monetary policy, its delayed effects on the economy, and other economic and financial events.
- The Committee plans to reduce its holdings of Treasury securities and other agency debts and securities.
- The primary aim is to bring inflation back to the 2% target.
- The Committee will keep assessing the economic outlook based on incoming data.
- If risks arise that could hinder the Committee's objectives, they are ready to modify the monetary policy stance.
- Their evaluations will consider various data, including labor market stats, inflation trends, financial, and global events.
