Fed FOMC statement: Rates kept unchanged at 3.5% to 3.75%

The Federal Reserve’s Federal Open Market Committee (FOMC) approved the latest statement by a vote of 12-0.

To support the Fed’s dual mandate, the committee decided to keep the federal funds target range unchanged at 3.5% to 3.75% and reaffirmed its policy of maintaining ample reserves in the banking system.

Despite a degree of uncertainty, partly related to conflict in the Middle East, economic activity continued to expand at a solid pace. Productivity growth and capital investment were strong, job gains kept pace with the labor force, and the unemployment rate changed little.

The statement also said inflation remains above the committee’s 2% target, partly because supply shocks have pushed up prices in some areas, including energy. The committee remains committed to achieving price stability.