by Ryan McMaken
Mises.org
On Wednesday, the Federal reserve’s Federal Open Market Committee left the target federal funds rate unchanged at 4.25-4.5 percent. The FOMC statement on the current policy, released on Wednesday, reads (my emphases in bold):
Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook has increased further. The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.