FOMC Statement – March 16, 2022
https://www.federalreserve.gov/newsevents/pressreleases/monetary20220316a.htm
Indicators of economic activity and employment have
continued to strengthen. Job gains have been strong in recent months, and the
unemployment rate has declined substantially. Inflation remains elevated,
reflecting supply and demand imbalances related to the pandemic, higher energy
prices, and broader price pressures.
The invasion of Ukraine by Russia is causing tremendous
human and economic hardship. The implications for the U.S. economy are highly
uncertain, but in the near term the invasion and related events are likely to
create additional upward pressure on inflation and weigh on economic activity.
The Committee seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. With appropriate
firming in the stance of monetary policy, the Committee expects inflation to
return to its 2 percent objective and the labor market to remain strong. In
support of these goals, the Committee decided to raise the target range for the
federal funds rate to 1/4 to 1/2 percent and anticipates that ongoing increases
in the target range will be appropriate. In addition, the Committee expects to
begin reducing its holdings of Treasury securities and agency debt and agency
mortgage-backed securities at a coming meeting.
In assessing the appropriate stance 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 stance
of monetary policy as appropriate if risks emerge that could impede the
attainment of the Committee's goals. The Committee's assessments will take into
account a wide range of information, including readings on public health, labor
market conditions, inflation pressures and inflation expectations, and
financial and international developments.
