Core Points - The Federal Reserve indicates that economic activity is expanding at a solid pace, with a generally easing labor market and a low unemployment rate, while inflation is progressing towards the 2 percent target but remains elevated [1][2] - The Federal Reserve has lowered the target range for the federal funds rate by 0.25 percentage points to 4.5% to 4.75% to support its dual mandate of maximum employment and stable inflation [3][7] - The Federal Reserve is committed to monitoring incoming data and adjusting monetary policy as necessary to achieve its goals, considering a wide range of information including labor market conditions and inflation expectations [4][5] Monetary Policy Implementation - The Board of Governors voted unanimously to lower the interest rate on reserve balances to 4.65%, effective November 8, 2024 [7] - The Federal Open Market Committee directed the execution of open market operations to maintain the federal funds rate within the target range, including conducting overnight repurchase and reverse repurchase agreement operations [8] - A 0.25 percentage point decrease in the primary credit rate to 4.75% was also approved, effective November 8, 2024 [8]

Economic Overview - Economic activity continues to expand at a solid pace, with job gains moderating and the unemployment rate increasing but remaining low[1] - Inflation has eased over the past year but remains elevated, with progress toward the Committee's 2 percent inflation objective noted[1] Monetary Policy Decisions - The Federal Reserve maintains the target range for the federal funds rate at 5-1/4 to 5-1/2 percent, with no expected reductions until inflation shows sustainable movement toward 2 percent[2] - The interest rate paid on reserve balances is set at 5.4 percent, effective August 1, 2024[4] Open Market Operations - Open market operations will be conducted to maintain the federal funds rate within the target range, with standing overnight repurchase agreement operations at a minimum bid rate of 5.5 percent and an aggregate operation limit of $500 billion[4] - The Federal Reserve will roll over principal payments from Treasury securities maturing in excess of $25 billion per month and reinvest agency debt and mortgage-backed securities payments exceeding $35 billion per month into Treasury securities[4] Committee's Commitment - The Committee is committed to returning inflation to its 2 percent objective and will monitor a wide range of information, including labor market conditions and inflation expectations, to assess monetary policy stance[3]