FOMC Monetary Policy Statement January Meeting - Text>

--December 13 Statement Follows for Comparison     

     WASHINGTON (MNI) - The following is the complete text of the FOMC 

statement issued Wednesday. The December 13 statement follows for 

comparison: 

     Information received since the Federal Open Market Committee met in 

December indicates that the labor market has continued to strengthen and 

that economic activity has been rising at a solid rate. Gains in 

employment, household spending, and business fixed investment have been 

solid, and the unemployment rate has stayed low. On a 12-month basis, 

both overall inflation and inflation for items other than food and 

energy have continued to run below 2 percent. Market-based measures of 

inflation compensation have increased in recent months but remain low; 

survey-based measures of longer-term inflation expectations are little 

changed, on balance. 

     Consistent with its statutory mandate, the Committee seeks to 

foster maximum employment and price stability. The Committee expects 

that, with further gradual adjustments in the stance of monetary policy, 

economic activity will expand at a moderate pace and labor market 

conditions will remain strong. Inflation on a 12-month basis is expected 

to move up this year and to stabilize around the Committees 2 percent 

objective over the medium term. Near-term risks to the economic outlook 

appear roughly balanced, but the Committee is monitoring inflation 

developments closely. 

     In view of realized and expected labor market conditions and 

inflation, the Committee decided to maintain the target range for the 

federal funds rate at 1-1/4 to 1-1/2 percent. The stance of monetary 

policy remains accommodative, thereby supporting strong labor market 

conditions and a sustained return to 2 percent inflation. 

     In determining the timing and size of future adjustments to the 

target range for the federal funds rate, the Committee will assess 

realized and expected economic conditions relative to its objectives of 

maximum employment and 2 percent inflation. This assessment will take 

into account a wide range of information, including measures of labor 

market conditions, indicators of inflation pressures and inflation 

expectations, and readings on financial and international developments. 

The Committee will carefully monitor actual and expected inflation 

developments relative to its symmetric inflation goal. The Committee 

expects that economic conditions will evolve in a manner that will 

warrant further gradual increases in the federal funds rate; the federal 

funds rate is likely to remain, for some time, below levels that are 

expected to prevail in the longer run. However, the actual path of the 

federal funds rate will depend on the economic outlook as informed by 

incoming data. 

     Voting for the FOMC monetary policy action were Janet L. Yellen, 

Chair; William C. Dudley, Vice Chairman; Thomas I. Barkin; Raphael W. 

Bostic; Lael Brainard; Loretta J. Mester; Jerome H. Powell; Randal K. 

Quarles; and John C. Williams. 

-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*- 

     The following is the text of the FOMC statement released after the 

policy meeting held December 12 - 13, 2017:

     Information received since the Federal Open Market Committee met in 

November indicates that the labor market has continued to strengthen and 

that economic activity has been rising at a solid rate. Averaging 

through hurricane-related fluctuations, job gains have been solid, and 

the unemployment rate declined further. Household spending has been 

expanding at a moderate rate, and growth in business fixed investment 

has picked up in recent quarters. On a 12-month basis, both overall 

inflation and inflation for items other than food and energy have 

declined this year and are running below 2 percent. Market-based 

measures of inflation compensation remain low; survey-based measures of 

longer-term inflation expectations are little changed, on balance. 

     Consistent with its statutory mandate, the Committee seeks to 

foster maximum employment and price stability. Hurricane-related 

disruptions and rebuilding have affected economic activity, employment, 

and inflation in recent months but have not materially altered the 

outlook for the national economy. Consequently, the Committee continues 

to expect that, with gradual adjustments in the stance of monetary 

policy, economic activity will expand at a moderate pace and labor 

market conditions will remain strong. Inflation on a 12-month basis is 

expected to remain somewhat below 2 percent in the near term but to 

stabilize around the Committees 2 percent objective over the medium 

term. Near-term risks to the economic outlook appear roughly balanced, 

but the Committee is monitoring inflation developments closely. 

     In view of realized and expected labor market conditions and 

inflation, the Committee decided to raise the target range for the 

federal funds rate to 1-1/4 to 1-1/2 percent. The stance of monetary 

policy remains accommodative, thereby supporting strong labor market 

conditions and a sustained return to 2 percent inflation. 

     In determining the timing and size of future adjustments to the 

target range for the federal funds rate, the Committee will assess 

realized and expected economic conditions relative to its objectives of 

maximum employment and 2 percent inflation. This assessment will take 

into account a wide range of information, including measures of labor 

market conditions, indicators of inflation pressures and inflation 

expectations, and readings on financial and international developments. 

The Committee will carefully monitor actual and expected inflation 

developments relative to its symmetric inflation goal. The Committee 

expects that economic conditions will evolve in a manner that will 

warrant gradual increases in the federal funds rate; the federal funds 

rate is likely to remain, for some time, below levels that are expected 

to prevail in the longer run. However, the actual path of the federal 

funds rate will depend on the economic outlook as informed by incoming 

data. 

     Voting for the FOMC monetary policy action were Janet L. Yellen, 

Chair; William C. Dudley, Vice Chairman; Lael Brainard; Patrick Harker; 

Robert S. Kaplan; Jerome H. Powell; and Randal K. Quarles. Voting 

against the action were Charles L. Evans and Neel Kashkari, who 

preferred at this meeting to maintain the existing target range for the 

federal funds rate. 

--MNI Washington Bureau, Tel: +1 202-371-2121; email: 

dcoffice@marketnews.com

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