the following is The text of the statement released Wednesday by the Federal Open Market Committee of the Federal Reserve of the united States (FOMC, for its acronym in English) after a two-day meeting:
“information received since the Federal Open Market Committee of the Federal Reserve met in July suggests that the labour market has continued to strengthen and that the growth in economic activity has picked up from the moderate pace seen in the first half of the year. Although the unemployment rate has undergone few changes in recent months, job creation has been strong on average. The expenditure of families has grown steadily but the fixed investment of the companies has remained weak. Inflation has continued below the long-term goal of the Committee is 2 percent, reflecting in part the declines previous in energy prices and a fall in the value of imports not linked to the energy sector. The measurements based on the markets in the inflation compensation is kept low. Most of the measurements based on surveys on inflation expectations in the long term threw a few changes, in general, in the last few months.
Consistent with its mandate and regulatory, the Committee seeks to foster maximum employment and price stability. The Committee hopes that, by using smooth adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and that labor market conditions strengthen more in the future. Inflation is expected to continue lower in the short term, in part due to the declines previous in the prices of energy, but will accelerate to 2 percent in the medium term as to dissipate the transient effects of the fall in the prices of energy and imports and the labour market strengthens further. The risks of short-term to the economic outlook seem to be almost balanced. The Committee continues to closely monitor the inflation indicators, the global economy and the events of the financial sector.
In this context, the Committee decided to maintain the target range for the federal funds rate between 0.25 and 0.50 percent. The Committee considers that the arguments for an increase in the federal funds rate have been strengthened, but has decided, for the moment, wait for more evidence of a steady progress towards your goals. The orientation of monetary policy remains expansionary, thus supporting further improvements in labour market conditions and the return to an inflation rate of 2 percent.
To determine the timing and size of future adjustments to the target range for the federal funds rate, the Committee will evaluate current economic conditions and future pertaining to its goals of full employment and 2 percent inflation.
This assessment will take into account a wide range of information, including indicators of labor market conditions, indicators of inflation pressures and inflation expectations and readings on international events and financial. In view of the fact that inflation is currently below 2 percent, the Committee will monitor carefully the progress current and expected toward its goal of inflation. The Committee expects that economic conditions will evolve in a way that can allow increases only gradual of the target range for the federal funds rate. The federal funds rate will probably remain, for some time, below levels that are expected to prevail in the long term. However, the current path of the federal funds rate will depend on the economic outlook and future data.
The Committee maintains its current policy of reinvesting the payment of the capital of its holdings of debt and agency securities agency mortgage-backed securities, agencies, mortgage-backed, and renew in auction Treasury bonds that become due, and anticipates that it will continue to do so until the normalization of the level of the federal funds rate is well under way. This policy, which keeps the investments of the Committee on long-term assets to quantifiable levels, should help maintain financial conditions expansionary.
In the vote in favour of the measure of monetary policy of the FOMC were: Janet L. Yellen, chair; William C. Dudley, vice chairman; Lael Brainard; James Bullard; Stanley Fischer; Jerome H. Powell; and Daniel K. Tarullo.
Voted against the decision: Esther L. George, Loretta Mester, and Eric Rosengren, who preferred to be at this meeting to raise the target range for the federal funds rate.
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