Federal Reserve issues FOMC statement

Federal Reserve issues FOMC statement ... Although overall economic activity edged down in the first quarter, household spending and business ... 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PressRelease  PDF May04,2022 FederalReserveissuesFOMCstatement Forreleaseat2:00p.m.EDT Share Althoughoveralleconomicactivityedgeddowninthefirstquarter,householdspendingandbusinessfixedinvestmentremainedstrong.Jobgainshavebeenrobustinrecentmonths,andtheunemploymentratehasdeclinedsubstantially.Inflationremainselevated,reflectingsupplyanddemandimbalancesrelatedtothepandemic,higherenergyprices,andbroaderpricepressures. TheinvasionofUkrainebyRussiaiscausingtremendoushumanandeconomichardship.TheimplicationsfortheU.S.economyarehighlyuncertain.Theinvasionandrelatedeventsarecreatingadditionalupwardpressureoninflationandarelikelytoweighoneconomicactivity.Inaddition,COVID-relatedlockdownsinChinaarelikelytoexacerbatesupplychaindisruptions.TheCommitteeishighlyattentivetoinflationrisks. TheCommitteeseekstoachievemaximumemploymentandinflationattherateof2percentoverthelongerrun.Withappropriatefirminginthestanceofmonetarypolicy,theCommitteeexpectsinflationtoreturntoits2percentobjectiveandthelabormarkettoremainstrong.Insupportofthesegoals,theCommitteedecidedtoraisethetargetrangeforthefederalfundsrateto3/4to1percentandanticipatesthatongoingincreasesinthetargetrangewillbeappropriate.Inaddition,theCommitteedecidedtobeginreducingitsholdingsofTreasurysecuritiesandagencydebtandagencymortgage-backedsecuritiesonJune1,asdescribedinthePlansforReducingtheSizeoftheFederalReserve'sBalanceSheetthatwereissuedinconjunctionwiththisstatement. 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. ImplementationNoteissuedMay4,2022 RelatedInformation PlansforReducingtheSizeoftheFederalReserve'sBalanceSheet LastUpdate: May04,2022