The U.S. Federal Reserve (Fed) announced its monetary policy resolution at 3 a.m. Taiwan time on Thursday (2nd), raising the target range of the federal funds rate (FFR) by 1 yard (25 basis points) to 4.50-4.75%, and continued to shrink balance sheet.
Below is the statement from the Fed’s February meeting, with wording differences from the statement from the previous December meeting:
Recent indicators of spending and production point to modest growth, job growth continues to be strong, and the unemployment rate remains low.Inflation has moderated somewhat, but remains stubbornly high.
“The December statement read: …inflation remains high, reflecting pandemic-related supply-demand imbalances, higher food and energy prices, and broader price pressures. “
The Russo-Ukrainian war resulted in enormous human and economic suffering,and bring high uncertainty to the global. The Committee is paying close attention to inflation risks.
“The December statement read: …War and related events put upward pressure on inflation and weigh on global economic activity. The Committee is paying close attention to inflation risks. “
The Committee seeks to achieve full employment and a longer-term inflation rate of 2 percent.In support of these objectives, the Committee decided to move the target range for the federal funds rate toIncreased to 4.50% to 4.75%. The Committee expects that further increases in the target range will be appropriate to achieve a sufficiently restrictive stance of monetary policy to allow inflation to return to 2 percent over time.
“The December statement read: The Committee decided to change the target range for the federal funds rate toraise to 4.25% to 4.50%。」
In the future, it is decided to raise the target rangedegreethe Committee will take into account the cumulative tightening of monetary policy, the timing of the impact of monetary policy on economic activity and inflation, and economic and financial developments.
“The December statement read: Future decisions to raise the target rangepacethe committee will…”
In addition, the Committee will continue to reduce its holdings of public debt, agency debt, and agency mortgage-backed securities,As described in the previously announced plan. The committee is strongly committed to getting inflation back to its 2% target.
“In addition, the Committee will continue to reduce its holdings of Treasury, agency debt, and agency mortgage-backed securities, the December statement read.As described in the “Plan to Reduce the Size of the Fed’s Balance Sheet” released in May.…」
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of subsequent information for the economic outlook, and will be prepared to adjust the stance of monetary policy appropriately if risks arise that may impede the Committee’s objectives. The committee’s assessment will take into account a wide range of information, including the state of the labor market, indicators of inflation pressure and inflation expectations, and data on financial and international developments.
“The December statement read: …. The committee’s assessment will take into account a wide range of information, includingpublic health data, the state of the labor market, indicators of inflationary pressures and inflation expectations, and data on financial and international developments. “
Supporting this monetary policy resolution are FOMC Chairman Jerome Powell, Vice Chairman John Williams, Michael Barr, Michelle Bowman, Lael Brainard, Library Lisa Cook,Austan Goolsbee, Patrick HarkerPhilip Jefferson,Neel Kashkari, Lorie LoganWaller (Christopher Waller).
“The December statement reads: Support for this monetary policy resolution includes FOMC Chairman Jerome Powell, Vice Chairman John Williams, Michael Barr, Michelle Bowman, Branner De (Lael Brainard),James Bullard, Susan CollinsLisa Cook,Esther GeorgePhilip Jefferson,Loretta Mester and Waller (Christopher Waller). “