November 2, 2023

Fed’s FOMC Statement: Fed holds interest rate at 5.25% – 5.50%

By Patrick Boughton

The recent release of the Federal Reserve’s Federal Open Market Committee (FOMC) statement sheds light on several pivotal developments within the US economy. Notably, the report highlights a robust expansion in the third quarter, although there has been a slowdown in job gains compared to earlier in the year, while the unemployment rate remains consistently low. “My colleagues and I remain squarely focused on our dual mandate to promote maximum employment and stable prices for the American people. We understand the hardship that high inflation is causing, and we remain strongly committed to bringing inflation back down to our 2 percent goal.” says Chair Powell.  

However, the persistent challenge of elevated inflation continues to loom. Concurrently, the statement underscores the robustness of the US banking system, even as tighter financial conditions for households and businesses raise concerns regarding their potential impact on economic activity, employment, and inflation.  

Here are the essential takeaways from the FOMC statement and what it means for the economy: 

  • Recent economic indicators show strong expansion in the third quarter.
  • Job gains have slowed but remain robust, while the unemployment rate remains low.
  • Inflation continues to be a significant concern.
  • The stability of the U.S. banking system contrasts with worries about tighter financial conditions for households and businesses, with uncertainties regarding their potential effects on the economy.
  • The Committee is committed to achieving maximum employment and a 2 percent inflation rate in the long run.
  • The federal funds rate target range will be maintained at 5.25 to 5.5 percent in support of the Committee’s objectives.
  • Ongoing assessments of incoming data and its impact on monetary policy will consider the cumulative effects of past policy changes, the time lags in policy’s impact on the economy, and various economic and financial developments.
  • The Committee plans to reduce its holdings of certain securities as part of its strategy to address inflation.
  • “We remain committed to bringing inflation back down to our 2 percent goal and to keeping longer-term inflation expectations well anchored. Reducing inflation is likely to require a period of below-potential growth and some softening of labor market conditions.”
  • Assessments will encompass a variety of factors, including labor market conditions, inflation pressures and expectations, and global economic developments.



Meet the Author

Patrick Boughton

More posts

Ready to get started? Call us today on 01244 346 343 or

What you’ll get from your CleverMPS demo:

  • Insights into the fund selection and monitoring system at the heart of the CleverMPS product range.
  • A deeper look at the performance of the Clever Marlborough Core and Sustainable MPS ranges since their inception.
  • An understanding of the unique client communications capabilities you’ll get with our CleverMPS Portal.
  • The chance to ask any questions you might have.

Book a Demo

To find out more about the CleverMPS, complete this form. We'll get back to you shortly

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

This website uses cookies to ensure you get the best experience on our website. Learn More

Got It