FOMC statement

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

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.” […] More

FOMC Statement and Powell News Conference

January 29, 2020

Three take-away points are to be noted about today’s FOMC statement: It was comparatively brief, using 46% fewer words than the previous meeting’s statement and revealed a unanimous decision, as expected, not to change the 1.5-1.75% federal funds target range. Today’s statement omits a lot of the forward guidance language such as the following from […] More

FOMC Statement Introduces More Ambiguity in Forward Guidance

October 30, 2019

A key sentence after the previous two rate cuts announced on July 31 and September 18th had read, “As the Committee contemplates the future path of the target range for the federal funds rate, it will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain […] More

Federal Funds Rate Target Cut and Controlled Reduction of Fed Balance Sheet Suspended Two Months Sooner than Planned

July 31, 2019

The Federal Open Market Committee opted for a 25-basis point interest rate cut, not the 50-bp that some had urged. The released statement also revealed a decision to “conclude the reduction of its aggregate securities holdings in the System Open Market Account in August, two months earlier than previously indicated.” The Committee was divided in […] More