FOMC Meeting Results

Federal Open Market Committee (FOMC) Meeting Results

Dr. Edmond J. Seifried

Dr. Seifried provides excerpts from an official published statement on the Federal Open Market Committee’s meetings.

FOMC Meeting Results, June 2020

Meeting Date:  June 9-10, 2020

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%

 
Economic Projections for 2020-2022:
The FOMC released it's Economic projection for 2020-2022

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%

 

Economic Highlights:
Federal Reserce is committed to using its full range of tools to support the U.S. economy, thereby promoting its maximum employment and price stability goals
  • “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.”

Announcements
Fed funds rate unchanged. Fed funds range remains at 0.0% -0.25%.
  • “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 Results
No dissenting votes

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.

 
Next Meeting:  July 28-29, 2020

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The preceding information contains excerpts from an official published statement on the Federal Open Market Committee’s March 15, 2020 meeting.  For full text, please visit the Federal Reserve website.

 


Dr. Ed Seifried is Chief Economist and Strategic Advisor at BNK Advisory Group. He is also professor of economics and business at Lafayette College in Easton, PA, and a faculty member of numerous graduate banking schools, including Stonier Graduate School of Banking and the Graduate School of Retail Bank Management. He also serves as dean of The West Virginia and Virginia Banking Management Schools. Dr. Seifried is a nationally recognized speaker and is the author of both academic and popular articles and books. He is the co-author of BNK's Art of Strategic Planning in Community Banks and The Art of Risk in Community Banks, a series for the committed bank director. He holds his doctorate in economics and business from West Virginia University.
 
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