Full statement from the Federal Reserve: Interest rates unchanged, two members support rate hike

In the early hours of Thursday, the Federal Reserve decided to maintain the federal funds rate target range at 3.75% to 4.00% with 10 votes in favor and 2 votes against. Lisa D. Cook and Beth M. Hammack cast the dissenting votes, both advocating for a 25 basis point increase at this meeting.

The Federal Open Market Committee approved the following statement with 10 votes in favor and 2 votes against:

The Committee decided to maintain the federal funds rate target range at 3.75% to 4.00% to support the Federal Reserve's dual mandate. The Committee continues to implement a policy of maintaining ample reserves in the banking system.

Economic activity is expanding at a strong pace. Despite factors such as geopolitical tensions keeping uncertainty high, domestic spending remains resilient. Productivity growth is strong, and capital investment is robust. Employment growth is in line with the growth of the labor force, and the unemployment rate has not changed significantly.

Inflation remains elevated. Gathering more information will help the Committee determine the appropriate policy stance to ensure inflation returns to the Committee's 2% target in a timely manner. The Committee will achieve price stability.

The members voting against this monetary policy action were Lisa D. Cook and Beth M. Hammack, both advocating for a 25 basis point increase in the federal funds rate target range at this meeting.