Northwest FCS News
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%
- “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.”
- 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 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.