June 15, 2022
The Federal Reserve issues a statement from the FOMC
For launch at 2:00 pm EDT
Global economic activity appears to have risen after declining during the first quarter. Employment increases have been robust in recent months and the unemployment rate has remained low. Inflation remains high, reflecting pandemic-related supply and demand imbalances, rising energy prices and broader price pressures.
The invasion of Ukraine by Russia is causing enormous human and economic hardship. Invasion and related events are creating additional upward pressure on inflation and are weighing on global economic activity. In addition, COVID-19-related blockages in China are likely to exacerbate supply chain disruptions. The Committee is very aware of the risks of inflation.
The Committee aims to achieve maximum employment and inflation at a rate of 2 per cent in the long run. In support of these goals, the Committee decided to increase the target range of the federal funds rate from 1-1 / 2 to 1-3 / 4 percent and predicts that continued increases in the target range will be appropriate. In addition, the Committee will continue to reduce its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Federal Reserve’s Balance Sheet Reduction Plans. issue in May. The Committee is firmly committed to returning inflation to its 2% target.
In assessing the proper direction of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the direction of monetary policy as appropriate if risks arise which could impede the achievement of the Committee’s objectives. The Committee’s assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflationary pressures and expectations of inflation and financial and international developments.
They voted in favor of monetary policy action Jerome H. Powell, president; John C. Williams, vice president; Michelle W. Bowman; Lael Brainard; James Bullard; Lisa D. Cook; Patrick Harker; Philip N. Jefferson; Loretta J. Mester; and Christopher J. Waller. Esther L. George voted against this action, preferring in this meeting to increase the target range of the federal funds rate by 0.5 percentage points to 1-1 / 4 percent in 1 -1/2 percent. Patrick Harker voted as an alternate member at this meeting.
Application note issued on June 15, 2022
Last updated: June 15, 2022