Here are the main points included in the statement from the U.S. Federal Reserve Committee issued this Wednesday:
The available indicators suggest that economic activity is still expanding at a moderate pace, although the rate of job growth has slowed during the current year, with a slight increase in the unemployment rate up to September. Moreover, the latest indicators have been consistent with these developments, at a time when inflation has risen since the beginning of the year and remains at relatively high levels.
The Federal Reserve is continuing its efforts to achieve maximum employment and maintain a long-term inflation rate of 2%, amid ongoing uncertainty surrounding economic forecasts. The monetary policy committee places great importance on the risks that threaten both sides of its dual mandate, while also seeing that the risks of declining employment have increased in recent months.
In support of these goals, and amid changing risk balances, the committee decided to lower the target range for the federal funds rate by a quarter percentage point to between 3.5% and 3.75%, confirming that it will rely on a careful assessment of incoming data, changing forecasts, and risk balances in any subsequent decisions regarding the extent and timing of additional adjustments, with a strong commitment to supporting employment and bringing inflation back to the 2% level.
As part of assessing the optimal stance of monetary policy, the Federal Reserve will continue to monitor the effects of incoming economic information on future forecasts, fully prepared to adjust the monetary stance as necessary if risks emerge that could hinder the achievement of policy objectives. The Federal Reserve will also consider a wide range of indicators, including labor market conditions, inflation pressures and expectations, along with financial and international developments.
The committee sees that reserve balances have declined to adequate levels, and that it will begin purchasing short-term Treasury securities as needed, with the aim of maintaining a continuous abundance of reserves within the financial system.
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