FOMC Monetary Policy Statement June Meeting - Text>

--May 2 Statement Follows for Comparison     

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

statement issued Wednesday. The May 2 statement follows for comparison: 

     Information received since the Federal Open Market Committee met in 

May indicates that the labor market has continued to strengthen and that 

economic activity has been rising at a solid rate. Job gains have been 

strong, on average, in recent months, and the unemployment rate has 

declined. Recent data suggest that growth of household spending has 

picked up, while business fixed investment has continued to grow 

strongly. On a 12-month basis, both overall inflation and inflation for 

items other than food and energy have moved close to 2 percent. 

Indicators 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 further gradual increases in the target range for the federal funds 

rate will be consistent with sustained expansion of economic activity, 

strong labor market conditions, and inflation near the Committee's 

symmetric 2 percent objective over the medium term. Risks to the 

economic outlook appear roughly balanced. 

     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 1-3/4 to 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 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, 

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

Bostic; Lael Brainard; Loretta J. Mester; Randal K. Quarles; and John C. 

Williams. 

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

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

policy meeting held May 1-2, 2018:

     Information received since the Federal Open Market Committee met in 

March indicates that the labor market has continued to strengthen and 

that economic activity has been rising at a moderate rate. Job gains 

have been strong, on average, in recent months, and the unemployment 

rate has stayed low. Recent data suggest that growth of household 

spending moderated from its strong fourth-quarter pace, while business 

fixed investment continued to grow strongly. On a 12-month basis, both 

overall inflation and inflation for items other than food and energy 

have moved close to 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. The Committee expects 

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

economic activity will expand at a moderate pace in the medium term and 

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

basis is expected to run near the Committees symmetric 2 percent 

objective over the medium term. Risks to the economic outlook appear 

roughly balanced. 

     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 1-1/2 to 1-3/4 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 Jerome H. Powell, 

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

Bostic; Lael Brainard; Loretta J. Mester; Randal K. Quarles; and John C. 

Williams. 

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

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