Federal Open Market Committee (FOMC) Meeting Results
Fed reaffirms its pledge to use its full range of tools to support the U.S. economy in this challenging time, in order to aggressively counter the negative impact on the economy from the Coronavirus pandemic
Feds funds rate range remains at 0.0% - 0.25%
GDP forecast for 2020 = -6.5%
Unemployment Rate forecast for 2020 = 9.3%
Inflation Rate forecast Rate forecast for 2020 = 0.8%
GDP forecast for 2021 = +5.0%
Unemployment Rate forecast for 2021 = 6.5%
Inflation Rate forecast Rate forecast for 2021 = 1.6%
GDP forecast for 2022 = +3.5%
Unemployment Rate forecast for 2022 = 5.5%
Inflation Rate forecast Rate forecast for 2022 = 1.7%
- “The coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world. The virus and the measures taken to protect public health have induced sharp declines in economic activity and a surge in job losses.
- Weaker demand and significantly lower oil prices are holding down consumer price inflation.
- Financial conditions have improved, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses..
- The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.”
- “The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.
- In light of these developments, the Committee decided to maintain the target range for the federal funds rate at 0 to 1/4 percent.
- 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.
- The Committee will continue to monitor the implications of incoming information for the economic outlook, including information related to public health, as well as global developments and muted inflation pressures, and will use its tools and act as appropriate to support the economy.
- In determining the timing and size of future adjustments to the stance of monetary policy, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective”
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Loretta J. Mester; and Randal K. Quarles.