Federal Reserve FOMC Statement: Holds Rates Steady, Removes Easing Bias

The Federal Open Market Committee approved the following statement by a vote of 12 to 0:

In support of the Fed's dual mandate, the Committee decided to maintain the target range for the federal funds rate at 3.5% to 3.75%. The Committee reiterated its policy of maintaining ample reserve levels in the banking system.

Despite some uncertainty, partly attributed to the Middle East conflict, economic activity continues to expand at a solid pace. Productivity growth and capital investment are strong. Job gains remain in line with the growth of the labor force, and the unemployment rate has changed little.

Inflation remains above the Committee's 2% target, partly due to supply shocks driving price increases in some sectors, including energy. The Committee is committed to achieving price stability.