The Federal Reserve is committed to its dual mandate of maximum employment and stable prices. The economy has shown strength, with GDP growth at 2.8% in the third quarter and a resilient labor market, although job gains have slowed. Inflation has eased but remains above the 2% target. To address this, the Federal Open Market Committee (FOMC) has reduced the policy interest rate by a quarter percentage point and continues to lower securities holdings. The FOMC projects GDP growth to remain solid and inflation to gradually return to the 2% target over the next few years. The committee is cautious about further rate cuts, balancing the risks of moving too quickly or too slowly in adjusting policy. The labor market is not seen as a significant source of inflationary pressure, and the committee remains vigilant in monitoring economic indicators to guide future policy decisions. The Fed acknowledges the impact of its actions on communities and is committed to supporting economic stability.