Full text of the Federal Reserve's decision: Maintain interest rates unchanged and expect one rate cut within the year, with Governor Mulan casting a dissenting vote

Source: Jin Ten

On March 19, the Federal Reserve kept interest rates unchanged, with members voting 11-1 in favor of this rate decision. Governor Miran cast the dissenting vote, believing that rates should be cut by 25 basis points.

The Federal Reserve FOMC statement indicates that the impact of developments in the Middle East is still unclear. The median of the dot plot shows a cumulative rate cut of 25 basis points by 2026.

Full Text of the Policy Statement

Available indicators suggest that economic activity is expanding at a steady pace. Job growth remains low, and the unemployment rate has changed little in recent months. Inflation remains at a certain level of high.

The committee aims to achieve maximum employment and a 2% inflation target in the long term. Uncertainty regarding the economic outlook remains high. The impact of developments in the Middle East on the U.S. economy is uncertain. The committee is attentive to the risks facing its dual mandate.

To support its goals, the committee decided to maintain the target range for the federal funds rate at 3.5%-3.75%. In considering the magnitude and timing of further adjustments to the federal funds rate target range, the committee will carefully assess the latest data, evolving outlook, and risk balance. The committee is firmly committed to supporting maximum employment and restoring inflation to the 2% target.

In assessing the appropriate monetary policy stance, the committee will continue to focus on how new information affects the economic outlook. If risks emerge that could impede the committee's goals, the committee will be prepared to adjust the monetary policy stance in a timely manner. The committee's assessment will consider a wide range of information, including labor market conditions, inflation pressures and expectations, as well as developments in financial and international conditions.

Voting in support of this monetary policy action were: Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Beth M. Hammack; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; Anna Paulson; and Christopher J. Waller. Dissenting from this decision was Stephen I. Miran, who advocated for a 25 basis point reduction in the federal funds rate target range at this meeting.