May 07, 2025

Federal Reserve’s Latest FOMC Statement

Recent data shows the economy is holding steady despite some fluctuations in net exports. The unemployment rate remains low, reflecting a stable job market. However, inflation is still higher than desired.

The Federal Reserve’s key goal is to maintain maximum employment and keep inflation around 2%. However, uncertainties about the economic future are growing. The risks of both rising unemployment and continued inflation are now more pronounced.

In light of this, the Committee has decided to keep the federal funds rate between 4.25% and 4.5%. Moving forward, they’ll carefully evaluate new data and adjust the rate as necessary. They are also reducing their holdings of Treasury and mortgage-backed securities, showing their commitment to achieving their goals.

As they shape monetary policy, the Committee considers various factors, including labor market trends and inflation expectations. They remain ready to modify their approach if any new risks arise that could disrupt their objectives.

The policymakers involved in these decisions include Jerome H. Powell (Chair), John C. Williams (Vice Chair), and others. Notably, Neel Kashkari participated as an alternate member during this meeting.

This cautious stance aligns with recent economic reports. According to the Bureau of Labor Statistics, job growth has averaged about 200,000 jobs per month over the last year, suggesting resilience in the labor market. However, a survey by the Conference Board indicates that consumer confidence is waning, with many people worried about rising prices.

For future updates, you can follow the Federal Reserve’s official communications.

For media inquiries, please email [email protected] or call 202-452-2955.

Implementation Note issued May 7, 2025

Last Update: May 07, 2025