U.S. Federal Open Market Committee’s March 20 Statement
Following is the FOMC statement released today by the Federal Reserve in Washington.
(Bloomberg) --
(Bloomberg) -- Following is the FOMC statement released
today by the Federal Reserve in Washington:
Information received since the Federal Open Market Committee met
in January indicates that the labor market remains strong but
that growth of economic activity has slowed from its solid rate
in the fourth quarter. Payroll employment was little changed in
February, but job gains have been solid, on average, in recent
months, and the unemployment rate has remained low. Recent
indicators point to slower growth of household spending and
business fixed investment in the first quarter. On a 12-month
basis, overall inflation has declined, largely as a result of
lower energy prices; inflation for items other than food and
energy remains near 2 percent. On balance, market-based measures
of inflation compensation have remained low in recent months,
and survey-based measures of longer-term inflation expectations
are little changed.
Consistent with its statutory mandate, the Committee seeks to
foster maximum employment and price stability. In support of
these goals, the Committee decided to maintain the target range
for the federal funds rate at 2-1/4 to 2-1/2 percent. The
Committee continues to view sustained expansion of economic
activity, strong labor market conditions, and inflation near the
Committee’s symmetric 2 percent objective as the most likely
outcomes. In light of global economic and financial developments
and muted inflation pressures, the Committee will be patient as
it determines what future adjustments to the target range for
the federal funds rate may be appropriate to support these
outcomes.
In determining the timing and size of future adjustments to the
target range for the federal funds rate, the Committee will
assess realized and expected economic conditions relative to its
maximum employment objective and its symmetric 2 percent
inflation objective. This assessment will take into account a
wide range of information, including measures of labor market
conditions, indicators of inflation pressures and inflation
expectations, and readings on financial and international
developments.
Voting for the FOMC monetary policy action were: Jerome H.
Powell, Chairman; John C. Williams, Vice Chairman; Michelle W.
Bowman; Lael Brainard; James Bullard; Richard H. Clarida;
Charles L. Evans; Esther L. George; Randal K. Quarles; and Eric
S. Rosengren.
SOURCE: Federal Reserve Board
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