“Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low,” a press release announcing the decision reads. “Inflation has made progress toward the Committee’s 2 percent objective but remains somewhat elevated.”
Bond yields have also climbed recently, in part due to the uptick in US inflation predictions and in part due to the expectation that the incoming Trump administration’s spending and tariff plans may contribute to inflation.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run,” the release reads. “The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.”
