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September 21, 2022
The Federal Reserve issues a statement from the FOMC
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Recent indicators point to modest growth in spending and output. Employment gains have been robust in recent months and the unemployment rate has remained low. Inflation remains elevated, reflecting pandemic-related supply-demand imbalances, higher food and energy prices, and broader price pressures.
Russia’s war against Ukraine is causing enormous human and economic hardship. The war and related events are creating additional upward pressure on inflation and weighing on global economic activity. The Committee is very attentive to the risks of inflation.
The Committee aims to achieve maximum employment and inflation at a rate of 2 percent in the long run. In support of these objectives, the Committee decided to increase the target range for the federal funds rate from 3% to 3-1/4% and anticipates 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 they issued in May. The Committee is strongly committed to returning inflation to its 2% target.
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The Federal Reserve raises rates by 75 basis points
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The Bank of Canada says inflation is moving in the right direction, but it’s still too high
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 monetary policy stance as appropriate if risks arise that 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 inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, chairman; John C. Williams, Vice President; Michael S. Barr; Michelle W. Bowman; Lael Brainard; James Bullard; Susan M. Collins; Lisa D. Cook; Esther L. George; Philip N. Jefferson; Loretta J. Mester; and Christopher J. Waller.
