Fed leaves benchmark rate unchanged in 12-0 vote, citing solid growth and higher inflation
The Federal Open Market Committee voted 12-0 to leave the federal funds target range at 3-1/2% to 3-3/4% and said uncertainty remains elevated.
The Federal Open Market Committee voted 12-0 on June 17 to keep its federal funds target range unchanged at 3-1/2% to 3-3/4%, the Federal Reserve said in a statement released at 2:00 p.m. EDT.
The central bank left borrowing costs in place while it monitors inflation, labor market conditions and the broader economy. The Fed said economic activity is expanding at a solid pace, but uncertainty remains elevated.
The committee cited the conflict in the Middle East as one source of that uncertainty. It also said productivity growth and capital investment are strong, job gains have kept pace with the workforce, and unemployment has changed little.
The Fed said inflation remains elevated relative to its 2% goal. It said supply shocks have driven price increases in some sectors, including energy. The statement also said the committee will maintain ample reserves in the banking system.
The June decision leaves the central bank holding steady as it waits for clearer signs on prices and growth. The statement does not include new projections or dissenting views in the text provided.
The Federal Reserve has not indicated any additional policy steps in the statement itself. The release included only media contact information.
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Editorial note: This article was prepared with AI assistance and requires editorial review before publication.
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