Fed Policy Should Help Stabilize Labor Market, Chair Powell Says

• The Federal Funds Rate target range was maintained at 3.5% to 3.75%.
• Policy rate has been lowered by 75 basis points since September, bringing it within a 'neutral' range.
• The Fed expects policy normalization to stabilize the labor market and guide inflation toward 2%.

Federal Reserve Chair Jerome Powell announced the committee's decision to maintain the federal funds rate at 3.5% to 3.75%. He stated that this policy normalization should help stabilize the labor market and allow inflation to resume its downward trend toward 2% once tariff effects have passed. Powell emphasized that future policy adjustments will be data-dependent and not on a preset course.