A comparison of the March 2025 statement to the May 2025 statement

March 19,
2025

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EDT

indicators suggest that economic activity has
continued to expand at a solid pace. The unemployment rate has stabilized at a
low level in recent months, and labor market conditions remain solid. Inflation
remains somewhat elevated.

The Committee seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. Uncertainty around
the economic outlook has increased.
The Committee is attentive to the risks to both sides of its dual mandate.

In support of its goals, the Committee decided to maintain
the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In
considering the extent and timing of additional adjustments to the target range
for the federal funds rate, the Committee will carefully assess incoming data,
the evolving outlook, and the balance of risks. The Committee will continue
reducing its holdings of Treasury securities and agency debt and agency
mortgage‑backed securities. Beginning in
April, the Committee will slow the pace of decline of its securities holdings
by reducing the monthly redemption cap on Treasury securities from $25 billion
to $5 billion. The Committee will maintain the monthly redemption cap on agency
debt and agency mortgage-backed securities at $35 billion. The
Committee is strongly committed to supporting maximum employment and returning
inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the
Committee will continue to monitor the implications of incoming information for
the economic outlook. The Committee would be prepared to adjust the stance of
monetary policy as appropriate if risks emerge that could impede the attainment
of the Committee’s goals. The Committee’s assessments will take into account a
wide range of information, including readings on labor market conditions,
inflation pressures and inflation expectations, and financial and international
developments.

Voting for the monetary policy action were Jerome H. Powell,
Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan
M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Adriana D. Kugler; Alberto G. Musalem; and Jeffrey
R. Schmid. Voting against this action was Christopher J. Waller,
who supported no change for the federal funds target range but preferred to
continue the current pace of decline in securities holdings.