Comparison of the Federal Open Market Committee (FOMC) statements issued in September and November 2024

Here’s a comprehensive comparison of the Federal Open Market Committee (FOMC) statements issued in September and November of 2024:

• Target Range Adjustments:
  • September: The FOMC lowered the target range for the federal funds rate by 1/2 percentage point to 4-3/4 to 5 percent.
  • November: The target range was lowered by 1/4 percentage point to 4-1/2 to 4-3/4 percent.
• Assessment of Inflation Progress:
  • September: The committee expressed greater confidence that inflation was moving sustainably toward 2 percent.
  • November: The statement simply noted that inflation had made progress toward the 2 percent objective but remained somewhat elevated. This suggests a slightly less optimistic outlook on inflation compared to September.
• Voting Discrepancies:
  • September: Michelle W. Bowman voted against the decision, preferring a smaller reduction of 1/4 percentage point.
  • November: The policy action was unanimous. This could indicate that the committee reached a stronger consensus by November.
• Economic Activity:
  • Both statements acknowledged that economic activity continued to expand at a solid pace.
• Labor Market Conditions:
  • Both statements noted that job gains had slowed and the unemployment rate had moved up but remained low.

Overall, the November FOMC statement reflects a continuation of the monetary policy direction set in September, with a slightly more cautious approach to lowering the target range, potentially due to a less confident outlook on inflation.