Federal Open Market Committee (FOMC) Meeting Results
This meeting was a virtual meeting
Fed said the U.S. economy faced major challenges and problems from the coronavirus pandemic and reiterated its pledge to take every action available to them to support an economic recovery.
Some experts had expected the Fed to announce new policy tools (e.g. Yield Curve Targeting and/or Negative Interest Rates) that had been under consideration since the start of the recession. The Fed made no such announcement today
Feds fund rate range remains at 0.0% - 0.25%
- “The coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world.
- Following sharp declines, economic activity and employment have picked up somewhat in recent months but remain well below their levels at the beginning of the year.
- Weaker demand and significantly lower oil prices are holding down consumer price inflation.
- Overall financial conditions have improved in recent months, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.
- The path of the economy will depend significantly on the course of the virus.
- 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 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.
- To support the flow of credit to households and businesses, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions.
- In addition, the Open Market Desk will continue to offer large-scale overnight and term repurchase agreement operations.
- 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.
- This assessment will consider 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 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.