FOMC Monetary Policy Statement Oct/Nov Meeting - Text>

--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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