AdvertisementSKIP ADVERTISEMENTJune 17, 2026Updated 4:48 p.m. ETInterest rates didn’t change on Wednesday, but the language in the Federal Reserve’s policy statement, which the central bank released alongside its rate decision, certainly did. The Federal Open Market Committee approved the following statement for release by a 12 – 0 vote:Recent indicators suggest that economic activity has been expanding at a solid pace.

Job gains have remained low, on average, and the unemployment rate has been little changed in recent months. Inflation is elevated, in part reflecting the recent increase in global energy prices.The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run.

Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook. The Committee is attentive to the risks to both sides of its dual mandate.In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3‑1/2 to 3‑3/4 percent, in support of the Federal Reserve’s dual mandate.

In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

The Committee reaffirmed its policy of maintaining ample reserves in the banking system.Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong.

Job gains have kept pace with the workforce, and the unemployment rate has changed little.Inflation remains elevated relative to the Committee’s 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy.

The Committee will deliver price stability. 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.Voting for the monetary policy action were Jerome H.

Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Philip N. Jefferson; Anna Paulson; and Christopher J. Waller. Voting against this action were Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting; and Beth M.

Hammack, Neel Kashkari, and Lorie K. Logan, who supported maintaining the target range for the federal funds rate but did not support inclusion of an easing bias in the statement at this time. The statement, which has traditionally served as a high-level glimpse of the Fed’s thinking behind its rate decisions, was notably succinct.

It came in at just 132 words, compared with 341 during the Fed’s last meeting in April, which also included a list of names of voting members.The most notable omission was so-called forward guidance — a way for the Fed to communicate what it might do next. The new Fed chairman, Kevin M.

Warsh, has been a vocal critic of forward guidance, saying it boxes the rate-setting committee in and makes it harder to pivot if necessary. April’s policy statement included a phrase that said the committee would look at “the extent and timing of additional adjustments,” which some interpreted as implying the Fed was considering future rate cuts.That phrase, which three members of the rate-setting committee objected to in April, was removed.

A paragraph stating that the Fed would take into account “a wide range of information” when making its decisions was also cut, in favor of a single closing sentence: “The Committee will deliver price stability.”The suggestion that the Fed would focus on inflation in particular could be a signal that rates may remain higher for longer.Christine Zhang is a Times reporter specializing in graphics and data journalism.AdvertisementSKIP ADVERTISEMENT