June 24 Text
Information received since theFederal Open Market Committee met inApril suggests that the pace of economiccontraction is slowing. Conditions infinancial markets have generally improvedin recent months. Household spending hasshown further signs of stabilizing butremains constrained by ongoing joblosses, lower housing wealth and tightcredit. Businesses are cutting back onfixed investment and staffing but appearto be making progress in bringinginventory stocks into better alignmentwith sales. Although economic activity islikely to remain weak for a time, theCommittee continues to anticipate thatpolicy actions to stabilize financialmarkets and institutions, fiscal andmonetary stimulus, and market forces willcontribute to a gradual resumption ofsustained economic growth in a context ofprice stability.The prices of energy and othercommodities have risen of late. However,substantial resource slack is likely todampen cost pressures, and the Committeeexpects that inflation will remainsubdued for some time.In these circumstances, the FederalReserve will employ all available toolsto promote economic recovery and topreserve price stability. The Committeewill maintain the target range for thefederal funds rate at 0 to 1/4 percentand continues to anticipate that economicconditions are likely to warrantexceptionally low levels of the federalfunds rate for an extended period. Aspreviously announced, to provide supportto mortgage lending and housing markets,and to improve overall conditions inprivate credit markets, the FederalReserve will purchase a total of up to$1.25 trillion of agency mortgage-backedsecurities and up to $200 billion ofagency debt by the end of the year. Inaddition, the Federal Reserve will buy upto $300 billion of Treasury securities byautumn. The Committee will continue toevaluate the timing and overall amountsof its purchases of securities in lightof the evolving economic outlook andconditions in financial markets. TheFederal Reserve is monitoring the sizeand composition of its balance sheet andwill make adjustments to its credit andliquidity programs as warranted.Voting for the FOMC monetary policyaction were: Ben S. Bernanke, Chairman;William C. Dudley; Elizabeth A. Duke;Charles L. Evans; Donald L. Kohn; JeffreyM. Lacker; Dennis P. Lockhart; Daniel K.Tarullo; Kevin M. Warsh; and Janet L.Yellen.
April 29 Text
Information received since the FederalOpen Market Committee met in March indicatesthat the economy has continued to contract,though the pace of contraction appears to besomewhat slower. Household spending has shownsigns of stabilizing but remains constrainedby ongoing job losses, lower housing wealthand tight credit. Weak sales prospects anddifficulties in obtaining credit have ledbusinesses to cut back on inventories, fixedinvestment, and staffing. Although theeconomic outlook has improved modestly sincethe March meeting, partly reflecting someeasing of financial market conditions,economic activity is likely to remain weak fora time. Nonetheless, the Committee continuesto anticipate that policy actions to stabilizefinancial markets and institutions, fiscal andmonetary stimulus, and market forces willcontribute to a gradual resumption ofsustainable economic growth in a context ofprice stability.In light of increasing economic slackhere and abroad, the Committee expects thatinflation will remain subdued. Moreover, theCommittee sees some risks that inflation couldpersist for a time below rates that bestfoster economic growth and price stability inthe longer term.In these circumstances, the FederalReserve will employ all available tools topromote economic recovery and to preserveprice stability. The Committee will maintainthe target range for the federal funds rate at0 to 1/4 percent and anticipates that economicconditions are likely to warrant exceptionallylow levels of the federal funds rate for anextended period. As previously announced, toprovide support to mortgage lending andhousing markets, and to improve overallconditions in private credit markets, theFederal Reserve will purchase a total of up to$1.25 trillion of agency mortgage-backedsecurities and up to $200 billion of agencydebt by the end of the year. In addition, theFederal Reserve will buy up to $300 billion ofTreasury securities by autumn. The Committeewill continue to evaluate the timing andoverall amounts of its purchases of securitiesin light of the evolving economic outlook andconditions in financial markets. The FederalReserve is facilitating the extension ofcredit to households and businesses andsupporting the functioning of financialmarkets through a range of liquidity programs.The Committee will continue to carefullymonitor the size and composition of theFederal Reserve's balance sheet in light offinancial and economic developments.Voting for the FOMC monetary policy actionwere: Ben S. Bernanke, Chairman; William C.Dudley; Elizabeth A. Duke; Charles L. Evans;Donald L. Kohn; Jeffrey M. Lacker; Dennis P.Lockhart; Daniel K. Tarullo; Kevin M. Warsh;and Janet L. Yellen.
FOMC S
TATEMENTS
: S
IDE
-
BY
-S
IDE
Leave a Comment