Fed Holds Rate at 3-1/2 to 3-3/4 Percent
The FOMC decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent. Chair Powell said the current policy stance is seen as appropriate to promote progress toward the maximum-employment and 2 percent inflation goals. 12
The statement says economic activity has been expanding at a solid pace, job gains have remained low, and the unemployment rate has been little changed. Powell put the unemployment rate at 4.3 percent in March. 12
Inflation is described as elevated, in part reflecting the recent increase in global energy prices. Developments in the Middle East are contributing to a high level of uncertainty about the outlook. 12
Powell said consumer spending has been resilient and business fixed investment has continued to expand at a brisk pace, while housing activity has remained weak. 1
The minutes say the Middle East conflict continued to drive asset prices, and that the crude oil futures curve was higher than at the March meeting. Near-term inflation expectations in the Desk survey moved up again, while those for 2027 and beyond were little changed. 1