Skip to Main Content

Richmond Fed at a Glance

July 2019

Monetary Policy Update

Fed Chair Powell addressing reporters
Federal Reserve
  • Fed policymakers voted 9–1 to maintain the target range for the federal funds rate at 2.25 percent to 2.5 percent during their two-day June meeting.
  • St. Louis Fed President James Bullard voted against the decision, preferring to lower the target range for the federal funds rate by 25 basis points. 
  • “The Committee continues to view sustained expansion of economic activity, strong labor market conditions and inflation near the Committee's symmetric 2 percent objective as the most likely outcomes, but uncertainties about this outlook have increased. In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective,” according to the Federal Open Market Committee’s June 18–19 statement.
  • The Committee also stated that its assessment for future changes to the federal funds rate “will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.”
  • Fed Chairman Jerome Powell fielded questions related to inflation, trade and the Fed’s governance during a news conference following the June 18–19 meeting. Regarding inflation, Powell told reporters “it's something I've been concerned about for quite a long time. It's one of the principal reasons why I called for the review in a world where policy rates are going to be closer to the effective lower bound.” With respect to trade, Powell explained, “It's really trade developments and concerns about global growth that are on our minds.” And, in response to questions regarding his tenure as Fed chairman, Powell said: “I think the law is clear that I have a four-year term and I fully intend to serve it.”
  • The next FOMC meeting is for July 30–31, 2019.

Resources: FOMC June 18–19, 2019; News Conference Video; Economic Projections
The FOMC holds eight regularly scheduled meetings each year. All meetings are followed by a news conference.

phone Contact Us

Jim Strader (804) 697-8956 (804) 332-0207 (mobile)