FOMC Monetary Policy Statement Sept 18 Meeting - Text>

--July 31 Statement Follows for Comparison     

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

statement issued Wednesday. 

   Information received since the Federal Open Market Committee met in 

July indicates that the labor market remains strong and that economic 

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

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

low. Although household spending has been rising at a strong pace, 

business fixed investment and exports have weakened. 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 remain low; 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 light of the 

implications of global developments for the economic outlook as well as 

muted inflation pressures, the Committee decided to lower the target 

range for the federal funds rate to 1-3/4 to 2 percent. This action 

supports the Committees view that sustained expansion of economic 

activity, strong labor market conditions, and inflation near the 

Committees symmetric 2 percent objective are the most likely outcomes, 

but uncertainties about this outlook remain. As the Committee 

contemplates the future path of the target range for the federal funds 

rate, it will continue to monitorthe 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; and Randal K. Quarles. 

     Voting against the action were James Bullard, who preferred at this 

meeting to lower the target range for the federal funds rate to 1-1/2 to 

1-3/4 percent; and Esther L. George and Eric S. Rosengren, who preferred 

to maintain the target range at 2 percent to 2-1/4 percent. 

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

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