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--September 20 Statement Follows for Comparison     
     WASHINGTON (MNI) - The following is the complete text of the FOMC 
statement issued Wednesday. The September 20 statement follows for 
comparison: 
     Information received since the Federal Open Market Committee met in 
September indicates that the labor market has continued to strengthen 
and that economic activity has been rising at a solid rate despite 
hurricane-related disruptions. Although the hurricanes caused a drop in 
payroll employment in September, 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. Gasoline 
prices rose in the aftermath of the hurricanes, boosting overall 
inflation in September; however, inflation for items other than food and 
energy remained soft. On a 12-month basis, both inflation measures 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 will continue to affect economic activity, 
employment, and inflation in the near term, but past experience suggests 
that the storms are unlikely to materially alter the course of the 
national economy over the medium term. 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 strengthen somewhat further. Inflation on a 
12-month basis is expected to remain somewhat below 2 percent in the 
near term but to stabilize around the Committee's 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 to 1-1/4 percent. The stance of monetary policy 
remains accommodative, thereby supporting some further strengthening in 
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. 
     The balance sheet normalization program initiated in October 2017 
is proceeding. 
     Voting for the FOMC monetary policy action were: Janet L. Yellen, 
Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L. 
Evans; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Jerome H. 
Powell; and Randal K. Quarles. 
-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*- 
     The following is the text of the FOMC statement released after the 
policy meeting held September 19-20, 2017:
     Information received since the Federal Open Market Committee met in
July indicates that the labor market has continued to strengthen and    
that economic activity has been rising moderately so far this year. Job 
gains have remained solid in recent months, and the unemployment rate   
has stayed low. 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, overall inflation and the measure        
excluding food and energy prices 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. Hurricanes Harvey, Irma, 
and Maria have devastated many communities, inflicting severe hardship. 
Storm-related disruptions and rebuilding will affect economic activity  
in the near term, but past experience suggests that the storms are      
unlikely to materially alter the course of the national economy over the
medium term. 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        
strengthen somewhat further. Higher prices for gasoline and some other  
items in the aftermath of the hurricanes will likely boost inflation    
temporarily; apart from that effect, 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 maintain the target range for the   
federal funds rate at 1 to 1-1/4 percent. The stance of monetary policy 
remains accommodative, thereby supporting some further strengthening in 
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.                                                                   
                                                                        
     In October, the Committee will initiate the balance sheet          
normalization program described in the June 2017 Addendum to the        
Committees Policy Normalization Principles and Plans.                  
                                                                        
     Voting for the FOMC monetary policy action were: Janet L. Yellen,  
Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L.      
Evans; Stanley Fischer; Patrick Harker; Robert S. Kaplan; Neel Kashkari;
and Jerome H. Powell.                                                   
--MNI Washington Bureau, Tel: +1 202-371-2121; email: 
dcoffice@marketnews.com
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