The FOMC seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The FOMC judges that the risks to achieving its employment and inflation goals are moving into better balance. The economic outlook is uncertain, and the FOMC remains highly attentive to inflation risks. In support of its goals, the FOMC decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the FOMC will carefully assess incoming data, the evolving outlook, and the balance of risks. The FOMC does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. 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.

Research in Focus — Using Chicago’s housing stock as the basis for a quantitative model, the authors reveal the household-level economic consequences of demolishing public housing.