00:00The U.S. Federal Reserve on Wednesday kept the target range for the federal funds rate unchanged
00:05at 3.5% until 3.75%. Federal Open Market Committee, FOMC, in a statement said economic
00:12activity is expanding at a solid pace despite elevated uncertainty, partly driven by the
00:19conflict in the Middle East.
00:25Productivity growth and capital investment remain strong while job gains continue to keep
00:30pace with workforce growth and the unemployment rate has remained largely unchanged.
00:35Meanwhile, FOMC said inflation remains elevated relative to the Committee's 2% goal, in part
00:41reflecting supply shocks that have driven price increases in certain sectors, including
00:45energy.
00:46In support of the Fed's dual mandate, the Committee decided to maintain the target
00:50range for the federal funds rate at 3.5% to 3.75%.
00:54The FOMC reaffirmed its policy of maintaining ample reserves in the banking system.
01:00All 12 FOMC members voted for keeping the rate unchanged.
01:04Following the FOMC meeting held on Tuesday and Wednesday, meeting participants submitted
01:09their projections of the most likely outcomes for real GDP growth, the unemployment rate
01:13and inflation for each year from 2026 to 2028 and over the longer run.
01:18The Federal Reserve Board members and Federal Reserve Bank presidents project the U.S. median
01:23GDP growth will be 2.2% in 2026, lower than the March projection of 2.4%.
01:30The median unemployment rate will be 4.3% in 2026, down from the March projection of 4.4%.
01:38Their GDP growth and unemployment projections for 2027 are 2.3% and 4.3% respectively, unchanged
01:46from the March projection.
01:47As for inflation based on the Personal Consumption Expenditures Price Index, FOMC meeting participants
01:53project it at 3.6% for 2026 and 2.3% for 2027, both higher than the March projections
02:01of
02:012.7% and 2.2% respectively.
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