The Federal Open Market Committee has voted 12-0 to approve a 25-basis-point increase in the federal funds rate, setting the target range at 3.75% to 4%. This unanimous decision reflects the Committee's commitment to supporting its dual mandate of maximum employment and price stability.

The Committee will continue its policy of maintaining ample reserves within the banking system. Economic activity is proceeding at a solid pace, with domestic spending showing resilience despite elevated uncertainty stemming from geopolitical developments and other factors.

Productivity growth remains robust, while capital investment continues to progress steadily. Job gains have kept pace with labor force growth, and the unemployment rate has moved little in recent months. Inflation remains elevated, and today's policy action is designed to facilitate a more timely return to the Committee's 2% target. The Committee remains focused on achieving price stability going forward.