January 29, 2025

Federal Reserve Federal Open Market Committee Statement

To be released at 2:00 p.m. ET

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Recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions have remained strong. Inflation remains moderately elevated.

The Committee seeks to achieve maximum employment and 2 percent inflation over the longer term. The Committee judges that the risks to achieving its employment and inflation objectives are broadly balanced. The economic outlook is uncertain, and the Committee is alert to risks that could threaten both aspects of its dual mandate.

In support of its objectives, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of further adjustments to the target range for the federal funds rate, the Committee will carefully evaluate incoming data, evolving expectations, and the balance of risks. The Committee will continue to reduce its holdings of Treasury securities, agency debt, and mortgage-backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.