FOMC statement of March 15, 2020
This statement of the Federal Open Market Committee, compared sentence by sentence with the scheduled statement before it: what changed in the text, and how the Committee voted.
In short
The Federal Open Market Committee released this unscheduled statement on March 15, 2020 (March 15 (unscheduled) Meeting - 2020). Compared with the previous scheduled statement of January 29, 2020: 7 sentences changed, 14 were added, 0 were removed, and 4 stayed the same. In words: 405 added, 52 removed. The vote on this statement: 1 member voted against: Loretta J. Mester. On the January 29, 2020 statement: Unanimous.
An unscheduled statement (Fed calendar: “March 15 (unscheduled) Meeting - 2020”). It is compared with the previous scheduled statement, so many sentences can look changed because the format differs. The comparison with the statement right before it is further down.
FOMC statement · March 15, 2020
Changed sentences against the previous scheduled statement (January 29, 2020)
Unscheduled statements this comparison skips: March 3, 2020
4 unchanged · 7 changed · 14 added · 0 removed · words +405 / −52
- January 29, 2020
- Unanimous.
- March 15, 2020
- 1 member voted against: Loretta J. Mester.
The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States.
Global financial conditions have also been significantly affected.
Available economic data show that the U.S. economy came into this challenging period on a strong footing.
Information received since the Federal Open Market Committee met in December January indicates that the labor market remains remained strong through February and that economic activity has been rising rose at a moderate rate.
Although household spending has been rising rose at a moderate pace, business fixed investment and exports remain remained weak.
More recently, the energy sector has come under stress.
Market-based measures of inflation compensation remain low have declined; survey-based measures of longer-term inflation expectations are little changed.
The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook.
In light of these developments, the Committee decided to maintain lower the target range for the federal funds rate at 1-1/2 to 1-3/4 0 to 1/4 percent.
The Committee 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.
The Committee judges that the current stance of monetary policy is appropriate to This action will help support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective.
The Committee will continue to monitor the implications of incoming information for the economic outlook, including information related to public health, as well as global developments and muted inflation pressures, and will use its tools and act as it assesses appropriate to support the appropriate path of the target range for the federal funds rate economy.
In determining the timing and size of future adjustments to the target range for the federal funds rate stance of monetary policy, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective.
The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals.
To support the smooth functioning of markets for Treasury securities and agency mortgage-backed securities that are central to the flow of credit to households and businesses, over coming months the Committee will increase its holdings of Treasury securities by at least $500 billion and its holdings of agency mortgage-backed securities by at least $200 billion.
The Committee will also reinvest all principal payments from the Federal Reserve's holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities.
In addition, the Open Market Desk has recently expanded its overnight and term repurchase agreement operations.
The Committee will continue to closely monitor market conditions and is prepared to adjust its plans as appropriate.
Voting against this action was Loretta J. Mester, who was fully supportive of all of the actions taken to promote the smooth functioning of markets and the flow of credit to households and businesses but preferred to reduce the target range for the federal funds rate to 1/2 to 3/4 percent at this meeting.
In a related set of actions to support the credit needs of households and businesses, the Federal Reserve announced measures related to the discount window, intraday credit, bank capital and liquidity buffers, reserve requirements, and-in coordination with other central banks-the U.S. dollar liquidity swap line arrangements.
More information can be found on the Federal Reserve Board's website .
Show the 4 unchanged sentences
Job gains have been solid, on average, in recent months, and the unemployment rate has remained low.
On a 12‐month basis, overall inflation and inflation for items other than food and energy are running below 2 percent.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · January 29, 2020
Compared with the statement right before it (March 3, 2020)
FOMC statement · March 15, 2020
Changed sentences against the previous statement (March 3, 2020)
0 unchanged · 2 changed · 23 added · 2 removed · words +586 / −46
- March 3, 2020
- Unanimous.
- March 15, 2020
- 1 member voted against: Loretta J. Mester.
The fundamentals of the U.S. economy remain strong.
However, the coronavirus poses evolving risks to economic activity.
The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States.
Global financial conditions have also been significantly affected.
Available economic data show that the U.S. economy came into this challenging period on a strong footing.
Information received since the Federal Open Market Committee met in January indicates that the labor market remained strong through February and economic activity rose at a moderate rate.
Job gains have been solid, on average, in recent months, and the unemployment rate has remained low.
Although household spending rose at a moderate pace, business fixed investment and exports remained weak.
More recently, the energy sector has come under stress.
On a 12‐month basis, overall inflation and inflation for items other than food and energy are running below 2 percent.
Market-based measures of inflation compensation have declined; survey-based measures of longer-term inflation expectations are little changed.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.
The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook.
In light of these risks and in support of achieving its maximum employment and price stability goals developments, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by 1/2 percentage point, to 1 0 to 1-1/4 1/4 percent.
The Committee 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.
This action will help support economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective.
The Committee is closely monitoring developments and their will continue to monitor the implications of incoming information for the economic outlook, including information related to public health, as well as global developments and muted inflation pressures, and will use its tools and act as appropriate to support the economy.
In determining the timing and size of future adjustments to the stance of monetary policy, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective.
This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.
The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals.
To support the smooth functioning of markets for Treasury securities and agency mortgage-backed securities that are central to the flow of credit to households and businesses, over coming months the Committee will increase its holdings of Treasury securities by at least $500 billion and its holdings of agency mortgage-backed securities by at least $200 billion.
The Committee will also reinvest all principal payments from the Federal Reserve's holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities.
In addition, the Open Market Desk has recently expanded its overnight and term repurchase agreement operations.
The Committee will continue to closely monitor market conditions and is prepared to adjust its plans as appropriate.
Voting against this action was Loretta J. Mester, who was fully supportive of all of the actions taken to promote the smooth functioning of markets and the flow of credit to households and businesses but preferred to reduce the target range for the federal funds rate to 1/2 to 3/4 percent at this meeting.
In a related set of actions to support the credit needs of households and businesses, the Federal Reserve announced measures related to the discount window, intraday credit, bank capital and liquidity buffers, reserve requirements, and-in coordination with other central banks-the U.S. dollar liquidity swap line arrangements.
More information can be found on the Federal Reserve Board's website .
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · March 3, 2020
How to read this page
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