The Fed’s statement suggested that the economy continues to expand at a “modest pace,” with some improvement in labor and housing markets. At the June meeting, the FOMC press release said the economic pace was expanding moderately, which was changed to modest after July’s meeting. They did note, however, that the unemployment rate remains elevated. The current press release did note the rise in mortgage rates, which increased following the Chairman’s last press conference.
The FOMC stated in its release that, “Labor market conditions have shown further improvement in recent months, on balance, but the unemployment rate remains elevated.”
While inflation is persistently low, the Fed is more optimistic about inflation in the medium term.
FOMC Fed Funds Rate Projections
Read the full FOMC statement below. Read the Federal Reserve's updated projections.