Federal Reserve issues FOMC statement_20251030

Core Points - Economic activity is expanding at a moderate pace, with job gains slowing and a slight increase in the unemployment rate, although it remains low [1] - Inflation has risen and remains somewhat elevated, with the Federal Reserve aiming for a long-term inflation rate of 2 percent [2] - The Federal Reserve has decided to lower the target range for the federal funds rate by 0.25 percentage points to 3.75% to 4% [3] Economic Indicators - Job gains have slowed this year, and the unemployment rate has edged up but remains low through August [1] - Recent indicators are consistent with the developments in job gains and unemployment [1] - Inflation has moved up since earlier in the year and remains somewhat elevated [1] Monetary Policy Decisions - The Federal Open Market Committee (FOMC) has lowered the interest rate paid on reserve balances to 3.90%, effective October 30, 2025 [8] - The FOMC will conduct open market operations to maintain the federal funds rate within the target range of 3.75% to 4% [8] - The FOMC has approved a 0.25 percentage point decrease in the primary credit rate to 4.0%, effective October 30, 2025 [8] Committee Actions - The FOMC is committed to supporting maximum employment and returning inflation to its 2% objective [3] - The Committee will continue to monitor incoming information and adjust monetary policy as necessary [4][5] - Voting members included Jerome H. Powell and others, with dissenting votes from Stephen I. Miran and Jeffrey R. Schmid [6]