| Consensus | Consensus Range | Actual | Previous | |
| Change | 0bp | 0bp to 0bp | 0bp | 0bp |
| Federal Funds Rate - Target Range | 3.5 to 3.75% | 3.5 to 3.75% to 3.5 to 3.75% | 3.5 to 3.75% | 3.50 to 3.75% |
Highlights
As expected, the FOMC left the fed funds target rate range unchanged at 3.50 to 3.75 percent.
The vote was 9-3 in favor of maintaining the fed funds target rate range.
Voting against the monetary policy action were Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, who preferred a rate hike. The voting record was the only difference from June, when the vote was 12-0.
On reserves,"The Committee is continuing its policy of maintaining ample reserves in the banking system."
There was no wording change on the description of economic activity.
Although inflation remains"elevated" relative to the 2 percent target, the statement repeated that"The Committee will deliver price stability". It continued to attribute high inflation"in part" to supply shocks, including energy.
The statement also repeated that"Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East."
"Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little."
Market Consensus Before Announcement
Forecasters see the FOMC on hold at this meeting with rising odds of a 25 basis point rate increase on Sept. 16 and a second move in October, given inflation worries.
Definition
The FOMC meeting announcement is a policy statement issued at the conclusion of each meeting of the Federal Open Market Committee. It offers updates on economic conditions with special focus on the health of the labor market and the latest on inflation. It also updates the status of the federal funds target which is the FOMC's official policy interest rate. This rate is expressed within a range, such as 1.75 to 2.00 percent. The center of this range is the implied target. The higher this target, the more restrictive monetary policy becomes, the lower this target, the more accommodative policy becomes. Other policy tools are also discussed in the meeting announcement including updates on direct purchases of Treasuries and mortgage-backed securities. Debate is not offered in the statement, just the consensus view is expressed, though the statement does list the total committee vote and how each member voted.