#Yesterday (June 18, 2025), the Federal Reserve Board and the Federal Open Market Committee (FOMC) released their economic projections from their June 17-18 FOMC meeting.
Key takeaways from their statements include:
* Economic Activity: Economic activity has continued to expand at a solid pace, despite swings in net exports.
* Unemployment & Labor Market: The unemployment rate remains low, and labor market conditions are solid.
* Inflation: Inflation remains somewhat elevated.
* Dual Mandate: The Committee seeks to achieve maximum employment and inflation at a rate of 2 percent over the longer run.
* Federal Funds Rate: The Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. This indicates they are holding interest rates steady for now.
* Balance Sheet: They will continue reducing their holdings of Treasury securities and agency debt and agency mortgage-backed securities.
* Future Policy: The Committee will carefully assess incoming data and the evolving outlook, adjusting their monetary policy stance as appropriate if risks emerge that could impede their objectives. Their assessment will consider various factors, including labor market conditions, inflation pressures, and global developments.
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