Federal Reserve issues FOMC statement20250129

Economic Activity - Recent indicators suggest that economic activity has continued to expand at a solid pace [1] - The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid [1] - Inflation remains somewhat elevated [1] Monetary Policy Goals - The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run [2] - The risks to achieving its employment and inflation goals are roughly in balance [2] - The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate [2] Federal Funds Rate - The Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent [3] - The Committee will carefully assess incoming data, the evolving outlook, and the balance of risks for future adjustments [3] - The Committee is committed to supporting maximum employment and returning inflation to its 2 percent objective [3] Monetary Policy Implementation - Effective January 30, 2025, the interest rate paid on reserve balances will be maintained at 4.4 percent [8] - Open market operations will be undertaken as necessary to maintain the federal funds rate in the target range [8] - Standing overnight repurchase agreement operations will have a minimum bid rate of 4.5 percent with an aggregate operation limit of $500 billion [8] - The amount of principal payments from Treasury securities maturing will be rolled over at auction, with a cap of $25 billion per month [8] - Reinvestment of principal payments from agency debt and agency mortgage-backed securities will be capped at $35 billion per month into Treasury securities [8]