FOMC Meeting: Key Takeawayscall out
March FOMC meeting | March 17, 2021
Policy Announcementcall out
The Federal Open Market Committee (FOMC) decided to leave the federal funds rate unchanged at 0.00%–0.25%. The Federal Reserve (Fed) also announced that it will continue to purchase at least $80 billion in Treasury securities and at least $40 billion in agency mortgage-backed securities until substantial further progress has been made toward the Committee’s goals.
COVID-19 is causing tremendous human and economic hardship across the United States and around the world. Economic activity and employment have turned up recently, with weakness concentrated in the sectors most adversely affected by the pandemic.
Overall financial conditions remain accommodative.
The path of the economy will depend significantly on the course of the coronavirus, including progress on vaccinations.
The FOMC expects to maintain the target range (0.00%-0.25%) until labor market conditions have reached levels consistent with the Committee’s assessment of maximum employment and inflation has risen to 2% and is on track to moderately exceed 2% for some time.
The FOMC 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 to the Committee’s goals emerge.
The Fed did not make any significant changes in today’s release.
In the summary of economic projects, four members see an initial rate hike in 2022, while seven members anticipate at least one rake hike by 2023. The majority of members did not project a rates hike over the three-year forecast period.
The FOMC sees inflation above its goal this year, but members expect inflation to moderate in future years. The summary of economic projections does not show that members expect inflation to move significantly above its goal of 2%.
The vote for the policy statement was unanimous.
|Upcoming Meeting Schedule||April 28 | June 16* | July 28 | September 22*
*Indicates the meeting is associated with a summary of economic projections. In addition, every meeting will be accompanied by a press conference.
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