FOMC Rate Decision

What the statement says

FOMC holds the federal funds rate target range at 5-1/4 to 5-1/2 percent and announces, for the first time, a slowdown in balance sheet reduction starting in June: Treasury securities monthly redemption cap reduced from $60 billion to $25 billion

• Maintains the federal funds rate target range unchanged at 5-1/4 to 5-1/2 percent
• States explicitly that 'it will not be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent'
• Announces a slowdown in balance sheet reduction starting in June: monthly Treasury securities redemption cap reduced from $60 billion to $25 billion
• Keeps the monthly redemption cap on agency debt and agency MBS unchanged at $35 billion; principal payments exceeding the cap will continue to be reinvested in Treasury securities
• Notes that 'inflation has eased over the past year but remains elevated' and 'there has been a lack of further progress toward the Committee's 2 percent inflation objective in recent months'

AI-generated summary of the official text. The official statement is authoritative. Not investment advice.