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Recent indicators suggest that economic activity continues to grow at a moderate pace. Job growth has been strong in recent months and the unemployment rate has remained low. Inflation remains high.

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The The American banking system it is healthy and durable. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation. The extent of these effects remains uncertain. The committee remains very vigilant inflation risks.

The committee aims to achieve maximum employment and inflation of 2% in the long term. To support these goals, the Committee decided to maintain the target range for the federal funds rate at 5 to 5-1/4 percent. Maintaining the target range at this meeting allows the Committee to assess additional information and its implications for monetary policy.

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In determining the extent of additional policy tightening 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 to reduce its holdings of Treasury securities and agency bonds and agency mortgage-backed securities as described in its previously announced plans. The Committee is firmly committed to returning inflation to its 2% target.

In assessing the appropriate setting of monetary policy, the Committee will continue to monitor the impact of incoming information on the economic outlook. The Committee would be prepared to adjust monetary policy settings as necessary if risks emerged that could impede the achievement of the Committee’s objectives. The Committee’s assessment will consider a wide range of information, including data on labor market conditions, inflationary pressures and inflationary expectations, and financial and international developments.

Chairman Jerome H. Powell voted for monetary policy action; John C. Williams, Vice-President; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Austan D. Goolsbee; Patrick Harker; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; and Christopher J. Waller.