Press Release
☷Federal Reserve issues FOMC statement
Federal Reserve System ( By Press Release office)
May 04,2022
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Although overall economic activity edged down in the first quarter , household spending and business fixed investment remained strong . Job gains have been robust 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 . The invasion and related events are creating additional upward pressure on inflation and are likely to weigh on economic activity . In addition , COVID - related lockdowns in China are likely to exacerbate supply chain disruptions . The Committee is highly attentive to inflation risks . 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 3/4 to 1 percent and anticipates that ongoing increases in the target range will be appropriate . In addition , the Committee decided to begin reducing its holdings of Treasury securities and agency debt and agency mortgage - backed securities on June 1 , as described in the Plans for Reducing the Size of the Federal Reserve ' s Balance Sheet that were issued in conjunction with this statement . 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 . Voting for the monetary policy action were Jerome H . Powell , Chair; John C . Williams , Vice Chair; Michelle W . Bowman; Lael Brainard; James Bullard; Esther L . George; Patrick Harker; Loretta J . Mester; and Christopher J . Waller . Patrick Harker voted as an alternate member at this meeting . Implementation Note issued May 4 , 2022
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