Full Text of the Federal Reserve's Decision: Maintaining Interest Rates and Expectation of One Rate Cut Later This Year, with Dissent from Board Member Milan

BlockBeats News, March 19: The Federal Reserve kept interest rates unchanged, with members voting 11-1 in favor of this rate decision. Governor Milan dissented, arguing for a 25-basis-point rate cut.

The Federal Reserve's FOMC statement indicated that the impact of the Middle East situation remains uncertain. The dot plot showed that a total of 25 basis points in rate cuts are projected by 2026.

The full policy statement is as follows:

Indicators available at the time of writing suggest that economic activity is expanding at a moderate pace. Job gains have been low, and the unemployment rate has held steady in recent months. Inflation remains at somewhat elevated levels.

The Committee seeks to achieve its dual mandate of maximum employment and 2% inflation over the long run. Uncertainties about the economic outlook remain high. The implications of the Middle East situation for the U.S. economy are uncertain. The Committee is monitoring risks to its dual mandate.

To support its goals, the Committee decided to maintain the federal funds target rate range at 3.5%-3.75%. In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess incoming data, the evolving outlook, and risks to the economic outlook. The Committee remains committed to supporting the achievement of maximum employment and the return of inflation to the 2% target.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. Should risks emerge that could impede the Committee's goals, the Committee is prepared to adjust the stance of monetary policy. The Committee's assessment will consider a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and developments in financial and international markets.

Voting in favor of the monetary policy action were: Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Beth M. Hammack; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; Anna Paulson; and Christopher J. Waller. Dissenting from the decision was Stephen I. Miran, who argued for a 25-basis-point reduction in the federal funds target range at this meeting.