The FOMC decided to leave our policy rate unchanged. We see the current stance of monetary policy as appropriate to promote progress toward our maximum employment and 2% inflation goals.

The implications of developments in the Middle East for the US economy are uncertain.

Economic activity has been expanding at a solid pace. Consumer spending has been resilient and business fixed investment has continued to expand. In contrast, activity in the housing sector has remained weak.

Inflation has eased significantly from its highs in mid 2022, but remains somewhat elevated relative to our 2% longer run goal.

Near-term measures of inflation expectations have risen in recent weeks, likely reflecting the substantial rise in oil prices caused by the supply disruptions in the Middle East.

In the near term, higher energy prices will push up overall inflation. But it is too soon to know the scope and duration of the potential effects on the economy.

The median participant projects that the appropriate level of the federal funds rate will be 3.4% at the end of this year and 3.1% at the end of next year, unchanged from December.