The FOMC seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the FOMC decided to raise the target range for the federal funds rate to 4-1/2 to 4-3/4 percent. The FOMC anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. In determining the extent of future increases in the target range, the FOMC will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the FOMC will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The FOMC is strongly committed to returning inflation to its 2 percent objective.