November 7, 2024
The Federal Reserve noted that economic activity continues to grow at a solid pace. Although the labour market has eased somewhat, the unemployment rate remains low. Inflation is moving towards the Fed’s 2% target but is still slightly elevated.
The Fed aims to achieve maximum employment and stable inflation at 2% over the long term. They believe the risks to these goals are balanced but acknowledge the economic outlook is uncertain. To support their objectives, the Fed has decided to lower the federal funds rate by 0.25 percentage points to a range of 4.5% to 4.75%. They will continue to monitor economic data and adjust policies as needed, including reducing their holdings of Treasury and mortgage-backed securities.
The Fed remains committed to supporting maximum employment and bringing inflation back to 2%. They will keep a close watch on labour market conditions, inflation pressures, and other financial and international developments to guide their policy decisions.
Federal Funds Target Rate
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