FOMC Monetary Policy Statement June 18 - 19 Meeting - Text>

--May 1 Statement Follows for Comparison     

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

statement issued Wednesday. The May 1 statement follows for comparison: 

     Information received since the Federal Open Market Committee met in 

May indicates that the labor market remains strong and that economic 

activity is rising at a moderate rate. Job gains have been solid, on 

average, in recent months, and the unemployment rate has remained low. 

Although growth of household spending appears to have picked up from 

earlier in the year, indicators of business fixed investment have been 

soft. On a 12-month basis, overall inflation and inflation for items 

other than food and energy are running below 2 percent. Market-based 

measures of inflation compensation have declined; survey-based measures 

of longer-term inflation expectations are little changed. 

     Consistent with its statutory mandate, the Committee seeks to 

foster maximum employment and price stability. In support of these 

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

federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to 

view sustained expansion of economic activity, strong labor market 

conditions, and inflation near the Committees symmetric 2 percent 

objective as the most likely outcomes, but uncertainties about this 

outlook have increased. In light of these uncertainties and muted 

inflation pressures, the Committee will closely monitor the implications 

of incoming information for the economic outlook and will act as 

appropriate to sustain the expansion, with a strong labor market and 

inflation near its symmetric 2 percent objective. 

     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 maximum 

employment objective and its symmetric 2 percent inflation objective. 

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. 

     Voting for the monetary policy action were Jerome H. Powell, Chair; 

John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard 

H. Clarida; Charles L. Evans; Esther L. George; Randal K. Quarles; and 

Eric S. Rosengren. Voting against the action was James Bullard, who 

preferred at this meeting to lower the target range for the federal 

funds rate by 25 basis points. 

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

policy meeting held April 30 - May 1:

Information received since the Federal Open Market Committee met in 

March indicates that the labor market remains strong and that economic 

activity rose at a solid rate. Job gains have been solid, on average, in 

recent months, and the unemployment rate has remained low. Growth of 

household spending and business fixed investment slowed in the first 

quarter. On a 12-month basis, overall inflation and inflation for items 

other than food and energy have declined and are running below 2 

percent. On balance, market-based measures of inflation compensation 

have remained low in recent months, and survey-based measures of 

longer-term inflation expectations are little changed. 

     Consistent with its statutory mandate, the Committee seeks to 

foster maximum employment and price stability. In support of these 

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

federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to 

view sustained expansion of economic activity, strong labor market 

conditions, and inflation near the Committees symmetric 2 percent 

objective as the most likely outcomes. In light of global economic and 

financial developments and muted inflation pressures, the Committee will 

be patient as it determines what future adjustments to the target range 

for the federal funds rate may be appropriate to support these outcomes. 

     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 maximum 

employment objective and its symmetric 2 percent inflation objective. 

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. 

     Voting for the FOMC monetary policy action were: Jerome H. Powell, 

Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; 

James Bullard; Richard H. Clarida; Charles L. Evans; Esther L. George; 

Randal K. Quarles; and Eric S. Rosengren

--MNI Washington Bureau, Tel: +1 202-371-2121; email: dcoffice@marketnews.com

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