June 15, 2022
The Federal Reserve has issued a statement to the FOMC
For launch at 14:00 EDT
Overall economic activity appears to have picked up since the first quarter. In recent months, job growth has been steady and unemployment remains low. Inflation remains high, reflecting pandemic supply and demand imbalances, higher energy prices and wider price pressures.
Russia’s invasion of Ukraine is causing great human and economic difficulties. The invasion and related events put additional upward pressure on inflation and weighed on global economic activity. In addition, the blockade related to COVID in China is likely to exacerbate supply chain disruptions. The Committee is extremely vigilant about inflation risks.
The committee aims to achieve maximum employment and inflation of 2 percent in the long run. In support of these objectives, the Committee has decided to raise the target range for interest rates on federal funds to 1‑1 / 2 to 1-3 / 4 percent and expects that the current increases in the target range will be appropriate. In addition, the Committee will continue to reduce its holdings of government securities and agency debt and agency-backed securities, as described in the Federal Reserve’s Balance Sheet Reduction Plans issued in May. The Committee is strongly committed to returning inflation to its 2 per cent target.
In assessing the appropriate monetary policy stance, the Committee will continue to monitor the impact of inputs on economic prospects. The Committee will be ready to adjust the monetary policy stance as appropriate if risks arise that could impede the achievement of the Committee’s objectives. The Committee’s assessments will take into account a wide range of information, including indications of public health, labor market conditions, inflationary pressures and inflation expectations, as well as financial and international trends.
Voted on monetary policy Jerome H. Powell, President; John C. Williams, Vice President; Michelle W. Bowman; Lael Brainard; James Bullard; Lisa D. Cook; Patrick Harker; Philip N. Jefferson; Loretta J. Master; and Christopher J. Waller. Esther L. George voted against this action, preferring to raise the target interest rate on federal funds by 0.5 percentage points to 1-1 / 4 percent to 1-1 / 2 percent. Patrick Harker voted to replace this assembly.
Implementation Note issued on 15 June 2022
Last updated: June 15, 2022
Add Comment