March 20, 2024
Fed releases FOMC statement
Scheduled to be released at 2pm EDT
Recent indicators suggest that economic activity is expanding at a solid pace. Employment growth remains strong and the unemployment rate remains low. Inflation has eased over the past year but remains high.
In the long term, the committee aims to achieve maximum employment and an inflation rate of 2%. The Committee judges that the balance of risks to achieving the employment and inflation goals is improving. The economic outlook remains uncertain, and the Committee continues to pay close attention to inflation risks.
In support of that goal, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 percent to 5-1/2 percent. When considering adjustments to the target range for the federal funds rate, the Committee carefully evaluates future data, prospects, and the balance of risks. The Committee does not believe that it is appropriate to lower the target range until there is greater confidence that inflation is on a sustained path toward 2 percent. Additionally, the Committee intends to continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities as described in previously announced plans. The Committee remains strongly committed to returning inflation to its 2% target.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the impact of incoming information on the economic outlook. The Committee stands ready to adjust its stance on monetary policy as appropriate if risks arise that impede the Committee’s goals. The Committee’s assessment takes into account a wide range of information, including readings about labor market conditions, inflation pressures and expectations, and financial and international developments.
Chairman Jerome H. Powell voted in favor of the monetary policy measure. John C. Williams, Vice-Chairman. Thomas I. Birkin. Michael S. Barr; Rafael W. Bostic. Michelle W. Bowman. Lisa D. Cook. Mary C. Daly. Philip N. Jefferson. Adrianna D. Kugler. Loretta J. Mester. and Christopher J. Waller.
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The January 2024 and March 2024 FOMC statements were nearly identical, with both maintaining the target range for the federal funds rate at 5-1/4 to 5-1/2%, solid economic expansion, strong employment. increases, low unemployment rates, and a rising economy. Reducing inflation. Both statements emphasized the Federal Reserve’s commitment to achieving maximum employment and 2% inflation, with close attention to inflation risks and the economic outlook remaining uncertain, and the Federal Reserve’s commitment to achieving these goals. He points out that risks are becoming more balanced.
The key points of consistency are:
- Maintaining the target range for the federal funds rate.
- Continued reductions in Treasury, agency, and mortgage-backed securities held by the Federal Reserve.
- A commitment to carefully evaluate emerging data, the evolving economic outlook, and the balance of risks before making adjustments to the federal funds rate.
- It said it would not be appropriate to lower the target range until there was greater confidence that inflation was on a sustained path towards 2%.
- Continuously monitor a wide range of information, including labor market conditions, inflation pressures and expectations, and financial and international developments in order to adjust policy stance as necessary.
The composition of members entitled to vote on monetary policy measures also remained unchanged from January to March 2024, with Jerome H. Powell as chair and John C. Williams as vice chair.
