第二，对于实现充分就业以及通胀双重目标的风险表述，新增“持续”趋向更好平衡的肯定性措辞，删除了“过去一年正在”趋向更好平衡的描述。There are three major changes in the statement of this meeting compared to the previous one. First, the description of the economy has been cooled down, recognizing that the unemployment rate has increased and affirming the trend of cooling down inflation. Second, the risk of achieving full employment and inflation dual goals tends to be balanced, and more positive wording is given. Third, "still highly concerned about inflation risks" is deleted, and emphasis is added on "facing risks for both employment and prices".
The Federal Reserve kept interest rate policy unchanged in July as scheduled. Compared with the last meeting statement in June, there were three major changes in the Federal Open Market Committee (FOMC) statement on monetary policy released on Wednesday, July 31.
Firstly, the description of the US economic growth was downgraded from "still strong" to "slowing down", and the description of the unemployment rate maintained the judgment of "still maintaining (historical) low levels" but added "some ascension". The description of high inflation was toned down to "somewhat elevated" and the realization of the 2% inflation target had deleted the phrase "moderate" progress and changed to "some further progress".
Secondly, for the risk statements of fulfilling the dual goals of full employment and inflation, new affirmative wording was added to "continuously" strive for a better balance, and "trending towards a better balance in the past year" was removed.
The most notable is that although the statement acknowledges that the economic outlook is still uncertain, the phrase "FOMC still highly concerned about inflation risks" has been deleted and emphasized that "the dual mandate of employment and prices both face risks", which indicates the recent dovish turn in public speeches by Federal Reserve officials, that is, the worry that overly restrictive monetary policy will have a negative impact on the labor market.
Finally, Loretta J. Mester, the President of the Cleveland Federal Reserve, retired at the end of June this year and did not participate in the voting of this meeting. Charles L. Evans, President of the Federal Reserve Bank of Chicago, as an alternate member of the voting committee was added to the voting camp.
The full text of the statement is translated as follows. The black font is the same as that of the June FOMC statement in 2024, the black font annotated in parentheses is the additional explanation content added by Wall Street News, and the red font is the new part in July 2024. The blue font in the parentheses is the deleted statement in the June statement (reprinted, please indicate the source):
Recent indicators show that economic activity continues to expand steadily. Employment growth has slowed down (still strong), and the unemployment rate has increased somewhat, but it is still low. In the past year, inflation has slowed down somewhat but is still somewhat elevated. In recent months, some (moderate) further progress has been made in achieving the FOMC committee's 2% inflation target.
The Committee (FOMC Committee) is committed to achieving maximum employment and a 2% inflation rate in the long run. The Committee judges that (in the past year), the risks of achieving employment and inflation targets are (continuously) trending towards a better balance. The economic outlook is uncertain, and the Committee (still highly) focuses on inflation risks and both faces risks of its dual mandate.
In order to support its (FOMC Committee) goal, the Committee decided to maintain the target range of the federal funds rate at 5.25% to 5.50%. When considering any adjustments to the target range for the federal funds rate, the Committee will carefully evaluate future data, evolving outlooks, and balancing risks. The Committee expects that before it is confident in continued progress toward its 2 percent inflation goal, moving to the lower end of the target range is not appropriate. In addition, the committee will continue to reduce its holdings of US and agency debts and agency mortgage-backed securities. The Committee is firmly committed to its goal of restoring the inflation rate to 2%.
In assessing the appropriate monetary policy stance, the Committee will continue to monitor the impact of the latest information on the economic outlook. If there are risks that may hinder achieving the goals, the Committee will be prepared to adjust its monetary policy stance accordingly. The Committee's assessment will be based on extensive information, including labor market conditions, inflation pressures and expectations, and changes in financial and international situations.
Those who voted in favor of this monetary policy include: Jerome H. Powell (Chairman of the Federal Reserve), John C. Williams (President of the New York Federal Reserve) as Deputy Chairman, Thomas I. Barkin (President of the Richmond Federal Reserve), Michael S. Barr (Director of the Federal Reserve), Raphael W. Bostic (President of the Atlanta Federal Reserve), Michelle W. Bowman (Director of the Federal Reserve), Lisa D. Cook (Director of the Federal Reserve), Mary C. Daly (President of the San Francisco Federal Reserve), Austan D. Goolsbee (President of the Chicago Federal Reserve); Philip N. Jefferson (Director of the Federal Reserve), Adriana D. Kugler (Director of the Federal Reserve); [Loretta J. Mester (President of the Cleveland Federal Reserve)]; Christopher J. Waller (Director of the Federal Reserve). Austan D. Goolsbee voted as an alternate member in this meeting.