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The Federal Open Market Committee (FOMC) is focused on achieving its dual mandate of maximum employment and stable prices. Currently, the U.S. economy remains solid, with a low unemployment rate of 4.2 percent indicating a labor market near maximum employment. Inflation has decreased significantly from its peak in mid-2022 but is still slightly above the 2 percent target, with total PCE prices rising 2.3 percent and core PCE prices rising 2.6 percent over the past year. Despite heightened uncertainty, particularly due to trade policy concerns, the FOMC has decided to keep the policy interest rate unchanged, believing that the current stance of monetary policy positions them well to respond to future economic developments. While consumer spending growth has moderated, private domestic final purchases grew at a solid rate, and investment in equipment and intangibles has rebounded. Overall, the labor market is not contributing significantly to inflationary pressures, and most long-term inflation expectations remain aligned with the FOMC's goals. The Federal Open Market Committee (FOMC) is maintaining the federal funds rate target range at 4.25 to 4.5 percent while continuing to reduce the balance sheet, as part of its commitment to its dual mandate of promoting maximum employment and stable prices. The new administration's policy changes in trade, immigration, fiscal policy, and regulation introduce significant uncertainty, particularly with larger-than-expected tariff increases. These tariffs could lead to higher inflation, slower economic growth, and increased unemployment, with the potential for inflationary effects to be either short-lived or more persistent. The FOMC emphasizes the importance of keeping long-term inflation expectations well anchored to prevent a temporary price level increase from becoming an ongoing inflation issue. The Committee is prepared to adjust its policy stance based on evolving economic conditions and is currently conducting a five-year review of its monetary policy framework, focusing on inflation dynamics and strategy, with input from diverse stakeholders. The review is expected to conclude by late summer. SUMMARIZE the most important information. write 1 concise paragraph.

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