FOMC Statement

April 29, 2020

No surprises can be found in today’s just released statement. The federal funds target range was left at 0-0.25% with guidance reaffirmed that “the Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.” There were no dissenting votes. A briefer-than-usual characterization of the U.S. economy observes ” sharp declines in economic activity and a surge in job losses” and asserts, “weaker demand and significantly lower oil prices are holding down consumer price inflation.” Regarding the uncertain future, the statement goes on to note: “The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term. In addition to the usual economic information that is always monitored, the FOMC now must also incorporate developments related to Covid-19 health crisis, and it ready to “use its tools and act as appropriate to support the economy.”

Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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