Fed FOMC statement holds rates steady, drops easing bias

The Federal Open Market Committee voted 12-0 to approve the following statement:

To support the Fed's dual mandate, the Committee decided to keep the target range for the federal funds rate unchanged at 3.5% to 3.75%. The Committee reaffirmed its policy of maintaining ample reserve balances in the banking system.

Despite some uncertainty, partly due to conflict in the Middle East, economic activity has continued to expand at a solid pace. Productivity growth and capital investment have been strong. Job gains have remained in line with growth in the labor force, and the unemployment rate has changed little.

Inflation remains somewhat elevated relative to the Committee's 2% objective, in part reflecting price increases in some areas, including energy, driven by supply shocks. The Committee is committed to achieving price stability.