Strong Labor Market, Moderate Growth Cited in FOMC Rate Decision

A strong labor market, moderate GDP growth and inflation below 2% factored into the Federal Open Market Committee’s decision at its latest meeting to maintain the federal funds rate in a target range of 1.5-1.75%, according to minutes released Friday. The current monetary policy stance was judged by members as appropriate for supporting the committee’s policy objectives.

Members agreed that global developments and muted inflation—which were cited as part of the rationale for the previous meeting’s rate cut—remain salient features of the outlook, the minutes said. “With the retention of these references to global developments and muted inflation pressures, members agreed that the text on uncertainties about the outlook could be removed.”