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 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]
FOMC statement 2024/07/31
Federal Reserve·2024-07-31 18:00