FOMC Results (November 2023)

Meeting Date: October 31 - November 1, 2023

Federal Open Market Committee (FOMC) Meeting Results

FOMC meeting highlights:

1. The Fed maintained its Target Fed Funds rate at the current level of 5.25% – 5.50%. This meeting’s vote was unanimous! 
2. The FOMC, which began to shrink its securities portfolio on June 1, 2022, announced it will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that it announced at the May 2022 FOMC meeting.
3. The Committee emphasized that it is strongly committed to returning inflation to its 2% objective.
4. The Committee emphasized that the U.S. commercial banking system is safe and sound.

Economic highlights:  

• “Recent indicators suggest that economic activity expanded at a strong pace in the third quarter. 
• Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low.
• Inflation remains elevated.
• The U.S. banking system is sound and resilient.
• Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation. 
• The Committee remains highly attentive to inflation risks.”

Announcements:  

• “The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run.
• In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 
• 5.25% to 5.5%. 
• The Committee will continue to assess additional information and its implications for monetary policy. In determining the extent of additional policy firming that may be appropriate to return inflation to 2% over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. 
• In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities as described in its previously announced plans. 
• The Committee is strongly committed to returning inflation to its 2% objective.
• In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. 
• The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
• The Board of Governors of the Federal Reserve System voted unanimously to maintain the interest rate paid on reserve balances at 5.4%, effective November 2, 2023.”

Voting results:  

Next meeting: