Federal Reserve System • Federal Open Market Committee • Reuters •

 

Minutes of the Federal Open Market Committee September 19–20, 2023

The Federal Open Market Committee (FOMC) met on September 19–20, 2023, to discuss monetary policy. At the conclusion of the meeting, the Committee issued the following statement:

The Committee decided to maintain the target range for the federal funds rate at 3/4 to 1 percent. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, the war in Ukraine, and other factors. The Committee is highly attentive to inflation risks.

The Committee expects that ongoing increases in the target range for the federal funds rate will be necessary to achieve the Committee's objectives of maximum employment and price stability. The pace of future increases in the target range will depend on the incoming data and the Committee's assessment of the risks to the outlook.

 

In addition, the Committee decided to continue reducing its holdings of U.S.

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Treasury securities and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that the Committee issued on May 4, 2022.

Minutes of the FOMC meeting of September 19–20, 2023

The minutes of the FOMC meeting of September 19–20, 2023, were released on October 12, 2023. The minutes provided more detail on the discussions and decisions of the Committee at the meeting.

The minutes noted that the Committee was highly attentive to inflation risks and that it expected that ongoing increases in the target range for the federal funds rate would be necessary to achieve the Committee's objectives of maximum employment and price stability. The minutes also noted that the pace of future increases in the target range would depend on the incoming data and the Committee's assessment of the risks to the outlook.

In addition to discussing monetary policy, the Committee also discussed the economic outlook and the risks to the outlook. The Committee noted that the economy continued to expand, but that the pace of growth had slowed. The Committee also noted that the labor market remained strong, but that inflation was elevated.

The Committee also discussed the risks to the economic outlook, including the ongoing war in Ukraine, the potential for a recession, and the possibility of a financial market downturn.

Conclusion

The minutes of the FOMC meeting of September 19–20, 2023, reinforced the message that the Committee is committed to reducing inflation. The minutes also noted that the Committee is aware of the risks to the economic outlook and that it is prepared to adjust monetary policy as needed.