Federal Reserve statement on interest rates shortened to 132 words

The Federal Reserve released a 132-word statement after its interest-rate decision, down from 341 words issued in April. The statement contained no forward guidance on possible future moves. New leadership cited a preference for markets to rely more on economic data than on explicit signals from the central bank.

Officials said the change aligns with past practice during periods without acute financial stress.

Market reaction Stock and bond prices moved after the release.

The S&P 500 index fell 1.2 percent on the day of the announcement. Yields on the 10-year Treasury note rose to 4.49 percent from 4.43 percent before settling lower in the next session. The 2-year Treasury yield reached 4.16 percent.

Planned reviews The central bank said it will form five task forces covering communications, the balance sheet, data collection, the effects of artificial intelligence on jobs, and inflation-analysis frameworks. One task force will examine the quarterly economic projections and the schedule of press conferences.

Officials noted that earlier chairs held such conferences less frequently than in recent years. Public remarks by the 18 members of the rate-setting committee may receive added attention as markets seek direction without formal guidance. Economists cited in the coverage said the approach could increase price swings if unexpected events occur.