Fed FOMC Statement: Rates Unchanged, Policy Tone Turns Neutral

The Federal Open Market Committee approved the following statement by a vote of 12 to 0.

To support the Fed's dual mandate, the committee decided to maintain the target range for the federal funds rate at 3.5% to 3.75% and reaffirmed the policy of maintaining ample reserves in the banking system.

Despite some degree of uncertainty, partly due to the Middle East conflict, economic activity continues to expand at a solid pace. Productivity growth and capital investment are strong. Employment growth is keeping pace with labor force growth, and the unemployment rate has changed little.

Inflation remains above the committee's 2% target, partly due to supply shocks pushing up prices in some sectors, including energy. The committee said it remains committed to achieving price stability.