"The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run," the Fed said at the conclusion of the July meeting of its policy-making Federal Open Market Committee (FOMC). "In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent."
Further rate decisions will depend on forthcoming data, the FOMC stated, sticking to language from last month. The committee will also continue reducing the Fed’s holdings of Treasury securities, as well as agency debt and agency mortgage-backed securities.
"In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook," the FOMC added. "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," the FOMC concluded.