Federal Reserve issues FOMC statement

Federal Reserve issues FOMC statement ... Indicators of economic activity and employment have continued to strengthen. The sectors most adversely ... 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PressRelease  PDF January26,2022 FederalReserveissuesFOMCstatement Forreleaseat2:00p.m.EST Share Indicatorsofeconomicactivityandemploymenthavecontinuedtostrengthen.ThesectorsmostadverselyaffectedbythepandemichaveimprovedinrecentmonthsbutarebeingaffectedbytherecentsharpriseinCOVID-19cases.Jobgainshavebeensolidinrecentmonths,andtheunemploymentratehasdeclinedsubstantially.Supplyanddemandimbalancesrelatedtothepandemicandthereopeningoftheeconomyhavecontinuedtocontributetoelevatedlevelsofinflation.Overallfinancialconditionsremainaccommodative,inpartreflectingpolicymeasurestosupporttheeconomyandtheflowofcredittoU.S.householdsandbusinesses. Thepathoftheeconomycontinuestodependonthecourseofthevirus.Progressonvaccinationsandaneasingofsupplyconstraintsareexpectedtosupportcontinuedgainsineconomicactivityandemploymentaswellasareductionininflation.Riskstotheeconomicoutlookremain,includingfromnewvariantsofthevirus. TheCommitteeseekstoachievemaximumemploymentandinflationattherateof2percentoverthelongerrun.Insupportofthesegoals,theCommitteedecidedtokeepthetargetrangeforthefederalfundsrateat0to1/4percent.Withinflationwellabove2percentandastronglabormarket,theCommitteeexpectsitwillsoonbeappropriatetoraisethetargetrangeforthefederalfundsrate.TheCommitteedecidedtocontinuetoreducethemonthlypaceofitsnetassetpurchases,bringingthemtoanendinearlyMarch.BeginninginFebruary,theCommitteewillincreaseitsholdingsofTreasurysecuritiesbyatleast$20billionpermonthandofagencymortgage‑backedsecuritiesbyatleast$10billionpermonth.TheFederalReserve'songoingpurchasesandholdingsofsecuritieswillcontinuetofostersmoothmarketfunctioningandaccommodativefinancialconditions,therebysupportingtheflowofcredittohouseholdsandbusinesses. Inassessingtheappropriatestanceofmonetarypolicy,theCommitteewillcontinuetomonitortheimplicationsofincominginformationfortheeconomicoutlook.TheCommitteewouldbepreparedtoadjustthestanceofmonetarypolicyasappropriateifrisksemergethatcouldimpedetheattainmentoftheCommittee'sgoals.TheCommittee'sassessmentswilltakeintoaccountawiderangeofinformation,includingreadingsonpublichealth,labormarketconditions,inflationpressuresandinflationexpectations,andfinancialandinternationaldevelopments. VotingforthemonetarypolicyactionwereJeromeH.Powell,Chair;JohnC.Williams,ViceChair;MichelleW.Bowman;LaelBrainard;JamesBullard;EstherL.George;PatrickHarker;LorettaJ.Mester;andChristopherJ.Waller.PatrickHarkervotedasanalternatememberatthismeeting. ImplementationNoteissuedJanuary26,2022 LastUpdate: January26,2022