Text of the policy statement released Thursday by the Federal Reserve

WASHINGTON– Below is the statement the Federal Reserve issued Thursday after its latest policy meeting concluded:

Recent indicators suggest that economic activity has continued to grow at a sustained pace. Since the start of the year, labor market conditions have generally improved and the unemployment rate has increased but remains low. Inflation has progressed toward the Committee’s 2 percent target, but remains somewhat elevated.

The Committee seeks to achieve maximum employment and inflation at a rate of 2 percent in the long term. The Committee believes that the risks to achieving its employment and inflation targets are roughly balanced. The economic outlook is uncertain and the Committee is alert to risks on both sides of its dual mandate.

In support of its objectives, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point, to between 4 1/2 and 4 3/4 percent. In considering additional adjustments to the federal funds rate target range, the Committee will carefully evaluate incoming data, the evolving outlook, and the balance of risks. The Committee will continue to reduce its holdings of Treasury securities, agency debt securities, and agency mortgage-backed securities. The Committee is strongly committed to supporting maximum employment and bringing inflation back to its 2 percent target.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of the information received for the economic outlook. The Committee would be prepared to adjust the monetary policy stance appropriately if risks emerge that could hamper the achievement of its objectives. The Committee’s assessments will take into account a wide range of information, including data on labor market conditions, inflation pressures and expectations, as well as financial and international developments.

The electors who voted in favor of the monetary policy action were Jerome H. Powell, President; John C. Williams, vice president; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Beth M. Hammack; Philip N. Jefferson; Adriana D. Kugler; and Christopher J. Waller.