March 16, 2022
Federal Reserve releases FOMC statement
For release at 2:00 pm EST.
Economic activity and employment continued to improve. In recent months, there has been a significant increase in the number of jobs, and the unemployment rate has fallen significantly. Inflation remains elevated, reflecting the supply-demand imbalance associated with the pandemic, higher energy prices and broader price pressures.
Russia’s invasion of Ukraine is causing enormous human and economic hardship. The implications for the US economy are highly uncertain, but the invasion and related developments are likely to put further upward pressure on inflation and dampen economic activity in the near term.
The committee aims to achieve maximum employment and inflation of 2 percent over the long term. The Committee expects that with appropriate monetary tightening, inflation will return to its target of 2 percent and the labor market will remain strong. In support of these goals, the Committee has decided to increase the target range for the federal funds rate to 1/4 to 1/2 percent and expects further increases in the target range to be appropriate. In addition, at its next meeting, the Committee plans to begin reducing its holdings of Treasury securities, agency debt and mortgage-backed agency securities.
In evaluating the appropriate monetary policy stance, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee will stand ready to adjust its monetary policy stance accordingly if risks arise that could hinder the achievement of the Committee’s objectives. The Committee’s assessments will take into account a wide range of information, including public health indicators, labor market conditions, inflationary pressures and inflation expectations, as well as financial and international developments.
The monetary policy measures were voted on by Jerome H. Powell, Chairman; John S. Williams, Vice Chairman; Michelle W. Bowman; Lael Brainar; Esther L. George; Patrick Harker; Loretta J. Mester; and Christopher J. Waller. The move was voted down by James Bullard, who preferred to raise the target range for the federal funds rate by 0.5 percentage points to 1/2 to 3/4 percent at the meeting. Patrick Harker voted as an alternate member at this meeting.
Implementation Note issued March 16, 2022
Last updated: March 16, 2022