FOMC statement of September 16, 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 statement on September 16, 2020. Compared with the previous scheduled statement of July 29, 2020: 4 sentences changed, 8 were added, 7 were removed, and 4 stayed the same. In words: 332 added, 226 removed. The vote on this statement: 2 members voted against: Robert S. Kaplan, Neel Kashkari. On the July 29, 2020 statement: Unanimous.
FOMC statement · September 16, 2020
Changed sentences against the previous scheduled statement (July 29, 2020)
4 unchanged · 4 changed · 8 added · 7 removed · words +332 / −226
- July 29, 2020
- Unanimous.
- September 16, 2020
- 2 members voted against: Robert S. Kaplan, Neel Kashkari.
The coronavirus outbreak COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world.
Following sharp declines, Economic activity and employment have picked up somewhat in recent months but remain well below their levels at the beginning of the year.
The ongoing public health crisis will continue to weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.
In light of these developments, the Committee decided to maintain the target range for the federal funds rate at 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 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 Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run.
With inflation running persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent.
The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved.
The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee's assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.
To support the flow of credit to households and businesses In addition, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions, thereby fostering effective transmission supporting the flow of monetary policy credit to broader financial conditions households and businesses.
In addition, the Open Market Desk will continue to offer large-scale overnight and term repurchase agreement operations.
The Committee will closely monitor developments and is prepared to adjust its plans as appropriate.
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 against the action were Robert S. Kaplan, who expects that it will be appropriate to maintain the current target range until the Committee is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals as articulated in its new policy strategy statement, but prefers that the Committee retain greater policy rate flexibility beyond that point; and Neel Kashkari, who prefers that the Committee indicate that it expects to maintain the current target range until core inflation has reached 2 percent on a sustained basis.
Show the 4 unchanged sentences
The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.
Weaker demand and significantly lower oil prices are holding down consumer price inflation.
Overall financial conditions have improved in recent months, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.
The path of the economy will depend significantly on the course of the virus.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · July 29, 2020
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