FOMC statement highlightsThe Committee acknowledged that inflation remains somewhat elevated, while noting that it no longer judges downside risks to employment as rising. The unemployment rate has shown signs of stabilisation, although job gains remain low, and uncertainty around the economic outlook remains elevated. Powell suggested the labour market may be stabilising, though job growth has slowed, reflecting both a decline in labour force growth and softening labour demand. On inflation, Powell reiterated that it remains somewhat elevated relative to the Fed’s goal, with core PCE inflation in December estimated at around 3%. On policy, Powell said the policy rate is within the range of plausible estimates of neutral, likely towards the higher end, and argued it is hard to characterise policy as significantly restrictive based on incoming data.