FOMC statement

FOMC Statement, Projections, and Press Conference

September 21, 2022

The FOMC increased the federal funds target by 75 basis points, meeting but not exceeded the majority forecast of investors. The new target is a range of 3.0-3.25%. The statement made just one modification, describing growth in spending and production as modest. In the July 27 statement, such was said to have “softened.” The policy […] More

FOMC Statement: No Surprises…. Decision on Size of September Meeting Not Made

July 27, 2022

The size of the interest rate hike, 75 basis points, matched expectations and the previous increase in mid-June. More increase in the future “will be appropriate.” Quantitative tightening that reduces the size of the Fed balance sheet by via not fully reinvesting matured principal of maturing assets, will proceed on the scheduled outlined in May. […] More

FOMC Statement and Press Conference: No Big Surprises and A Singularly Anti-Inflation Approach Articulated

January 26, 2022

As expected, the FOMC statement signals that the fed funds rate will likely be raised “soon,” code for the clear  possibility of lift-off at the next meeting in March. Inflation has been recategorized from “having exceeded 2%” to “well above 2%.” An assertion of “a strong labor market” was inserted into the statement as a […] More

FOMC Statement and Powell Press Conference

November 3, 2021

The FOMC statement as expected laid out a schedule of tapered new asset purchases that will phase out that activity altogether after next June. Today’s statement indicates another unanimous 11-0 decision but does not address the timing of a subsequent interest rate lift-off. Monthly increases in Fed holdings of Treasury Securities will be reduced by […] More

FOMC Statement and Powell’s Press Conference

July 28, 2021

Aside from some inserted clarification regarding the timetable to tapering quantitative stimulus, little was changed in today’s FOMC statement. The economy has made progress toward these goals [of  maximum employment and inflation rising to 2 percent and being on track to moderately exceed 2 percent for some time], and the Committee will continue to assess […] More

FOMC Statement, Projections, and Press Conference

March 17, 2021

The FOMC voted unanimously (11-0) to retain the 0 to 1/4 percent federal funds target and continuing quantitative stimulus (purchases of at least $80 billion per  month of Treasury bonds and at least $40 billion of agency mortgage-backed securities. Forward guidance was not modified but the released statement did tweak its projections. Growth conditions were […] More

FOMC Statement and Press Conference

January 27, 2021

Today’s FOMC statement makes some modifications in the second and third paragraphs that deal with current U.S. economic conditions and their outlook.  December’s press release had talked about a continuing recovery of activity and employment, while today’s assessment speaks of a “moderating” recovery recently concentrated in sectors affected by Covid. A phrase “progress on vaccinations” […] More

FOMC Statement, Forecasts, and Powell Press Conference

December 16, 2020

Today’s FOMC statement elaborates on text in the sentence dealing with  monthly increased holdings of Treasury securities and agency mortgage-backed securities, spelling out the amounts of at least $80 billion in the former and at least $40 billion in the latter. Those figures in fact represent the current pace, so the added words do not […] More

FOMC Statement and Powell’s Press Conference

July 29, 2020

The Federal Open Market Committee ended its two-day policy review and released a statement that’s almost identical to the previous announcement on June 10. Just two sentences were added as indicated below, and none were deleted: Economic activity and employment have picked up somewhat in recent months but remain well below their levels at the […] More

FOMC Statement and Press Conference — Highlights and Analysis

June 10, 2020

Today’s FOMC statement is nearly identical to the one released after the late April meeting with the notable modification that financial market conditions, which then were being impaired by economic activity disruptions, have since improved. Policy measures, goals and intentions remain as before, but there is a hint that purchases of Treasuries and other bonds […] More