Chair Warsh Says Fed Will Deliver Price Stability

• The Federal Open Market Committee (FOMC) decided to maintain the target range for the federal funds rate at 3.5% to 3.75%.
• Economic activity is expanding at a solid pace, supported by strong productivity growth and capital investment, with the unemployment rate remaining stable.
• Inflation has been running well above the Fed's 2% long-stated goal for over five years, but the committee is 'unambiguous and unanimous' in its commitment to deliver price stability.
• The policy statement is now shorter, simpler, and dispenses with 'forward guidance,' which was deemed not well-suited to the current policy conjuncture.
• Median economic projections for this year include real GDP growth of 2.2%, total PCE inflation of 3.6%, and an unemployment rate of about 4.3%.

Federal Reserve Chair Kevin Warsh announced the committee's decision to maintain the federal funds rate, emphasizing the Fed's commitment to price stability and maximum employment. He noted solid economic activity and strong productivity, despite geopolitical uncertainty, while acknowledging persistent inflation above the 2% target.