Unemployment, Inflation
U.S. unemployment was 4.4 percent in June, below the Fed’s
4.6 percent estimate of full employment. Inflation has missed the central bank’s target for most of the past five years. The central bank’s preferred price measure rose 1.4 percent for the 12-month period ending May.
The FOMC retained language that it expects to keep raising interest rates at a “gradual” pace if economic data play out in line with forecasts.
“The committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal,” the statement said.
The vote was unanimous.
Easing financial conditions, despite Fed rate hikes, have helped support overall growth. U.S. stocks extended all-time highs ahead of Wednesday’s statement amid corporate earnings and gains in commodities.
The U.S. Commerce Department will release second quarter growth data on Friday. Economists surveyed by Bloomberg expect the economy to have rebounded to a 2.5 percent annual growth pace, from 1.4 percent in the first quarter.
This article was provided by Bloomberg News.