FOMC Press Conference July 31, 2024

Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have moderated, and the unemployment rate has moved up but remains low. Inflation has eased over the past year but remains somewhat elevated. In recent months, there has been some 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 continue to move into better balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate. 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. post: FOMC STATEMENT COMPARE: pic.twitter.com/90cOpvUEPQ post: *FED REPEATS WAITING FOR GREATER CONFIDENCE ON INFLATION TO CUT post: FED: INFLATION REMAINS ''SOMEWHAT'' ELEVATED. post: *FED: RISKS TO ACHIEVING EMPLOYMENT, INFLATION GOALS CONTINUE TO MOVE INTO BETTER BALANCE

post: FED'S POWELL: THE LABOR MARKET HAS COME INTO BETTER BALANCE. post: POWELL: ATTENTIVE TO RISKS ON BOTH SIDES OF DUAL MANDATE post: FED'S POWELL: THE PACE OF SPENDING HAS SLOWED BUT REMAINS SOLID. post: FED'S POWELL: IN THE HOUSING SECTOR, INVESTMENT STALLED IN 2Q. post: FED'S POWELL: DATA SUGGESTS THAT THE LABOR MARKET HAS RETURNED TO WHERE IT WAS ON THE EVE OF THE PANDEMIC.

post: *POWELL: 2Q INFLATION READINGS HAVE ADDED TO OUR CONFIDENCE post: *POWELL: ECONOMY MOVING CLOSER TO POINT WHERE APPROPRIATE TO CUT RATES post: *POWELL: RATE CUT COULD BE ON TABLE IN SEPTEMBER post: FED'S POWELL: THERE IS A BROAD SENSE THAT WE ARE GETTING CLOSER, BUT NOT QUITE AT THAT POINT YET. post: FED'S POWELL: WE DON'T THINK OF THE LABOR MARKET AS IT IS CURRENTLY AS A LIKELY SOURCE OF INFLATION PRESSURES. THAT'S WHY I DON'T WANT TO SEE EXCESS COOLING IN THE LABOR MARKET.

post: *POWELL: DOWNSIDE RISKS TO EMPLOYMENT ARE REAL NOW, HAVE TO WEIGH RISKS post: *POWELL: WE GET A LOT OF DATA BETWEEN NOW AND SEPTEMBER post: POWELL: ** WE'VE SEEN SOME TENDENCY TO HAVE A NARROWING BASE OF JOB CREATION SOME MONTHS, BUT NOT IN OTHERS ** WE DO LOOK AT PRIVATE DEMAND EXTRA CAREFULLY post: POWELL: ** STRONG MAJORITY SUPPORTED NOT MOVING RATES AT THIS MEETING ** POLICY LAGS BEGINNING TO SHOW UP IN ECONOMY OVER LAST 6 MONTHS post: POWELL: ** I FEEL GOOD ABOUT WHERE WE ARE ** WE ARE WELL POSITIONED TO RESPOND TO ANY WEAKNESS IN ECONOMY, NOT WHAT WE ARE SEEING THOUGH ** WE HAVE A LOT OF ROOM TO RESPOND IF SAW WEAKNEESS ** WAGE GAINS ARE STILL AT A HIGH LEVEL