April 29, 2020

Northwest FCS News

Meeting Date:  April 28-29, 2020

Federal Open Market Committee (FOMC) Meeting Results

Fed reaffirms it's pledge to aggressively counter the negative impact on the economy from the Coronavirus pandemic

Feds fund rate range remains at  0.0% - 0.25%

FOMC responds to the pandemic:
The Federal Reserve reassures the markets that the FOMC  will aid the economy in thy way possible to fight the economic impact of the virus.


Economic Highlights:
In this moment of economic distress the FOMC declares that the Federal Reserve is committed to using its full range of tools to support the U.S. economy, thereby promoting its maximum employment and price stability goals.


  • “The coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world.
  • The virus and the measures taken to protect public health are inducing sharp declines in economic activity and a surge in job losses.
  • Weaker demand and significantly lower oil prices are holding down consumer price inflation. The disruptions to economic activity here and abroad have significantly affected financial conditions and have impaired the flow of credit to U.S. households and businesses.
  • The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.”




Fed funds rate unchanged. Fed funds range remains at 0.0% -0.25%. The Fed indicated it will keep rate at this level until the virus pandemic is behind us. The Fed also promised to continue its purchases of securities (QE) to support the broader economy
  • FOMC decided to maintain the target range for the federal funds rate at 0 to 1/4 percent. The Fed expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.
  • To support the flow of credit to households and businesses, the Federal Reserve will continue to purchase Treasury securities and agency residential and commercial mortgage-backed securities in the amounts needed to support smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions.
  • In addition, the Open Market Desk will continue to offer large-scale overnight and term repurchase agreement operations. The Committee will closely monitor market conditions and is prepared to adjust its plans as appropriate.
 Voting Results
No dissenting votes

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Loretta J. Mester; and Randal K. Quarles.

Next Meeting:  June 9-10, 2020


The preceding information contains excerpts from an official published statement on the Federal Open Market Committee’s March 15, 2020 meeting.  For full text, please visit the Federal Reserve website.