Federal Open Market Committee (FOMC) Meeting Results
This meeting was a virtual meeting
Fed pledges to use full range of tools to assist the economy. Fed does not change rates - keeps interest rate range at 0.0% - 0.25%
Fed claims that the COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world and warns of additional economic and financial harm that the virus might cause.
Fed forecasts the course of the economy will depend on the course of the virus.
Fed promises to use all tools at their disposal, thereby promoting its maximum employment and price stability goals.
- “The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.
- The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world.
- Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year.
- Weaker demand and earlier declines in oil prices have been holding down consumer price inflation. Overall financial conditions remain accommodative, 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 continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.
- “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved.
- The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee's assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.
- In addition, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby supporting the flow of credit to households and businesses.”
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Mary C. Daly; Patrick Harker; Robert S. Kaplan; Loretta J. Mester; and Randal K. Quarles. Ms. Daly voted as an alternate member at this meeting.