FOMC statement of March 16, 2022
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 March 16, 2022. Compared with the previous scheduled statement of January 26, 2022: 2 sentences changed, 6 were added, 10 were removed, and 6 stayed the same. In words: 163 added, 243 removed. The vote on this statement: 1 member voted against: James Bullard. On the January 26, 2022 statement: Unanimous.
FOMC statement · March 16, 2022
Changed sentences against the previous scheduled statement (January 26, 2022)
6 unchanged · 2 changed · 6 added · 10 removed · words +163 / −243
- January 26, 2022
- Unanimous.
- March 16, 2022
- 1 member voted against: James Bullard.
The sectors most adversely affected by the pandemic have improved in recent months but are being affected by the recent sharp rise in COVID-19 cases.
Job gains have been solid strong in recent months, and the unemployment rate has declined substantially.
Supply and demand imbalances related to the pandemic and the reopening of the economy have continued to contribute to elevated levels of inflation.
Overall financial conditions remain accommodative, 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 continues to depend on the course of the virus.
Progress on vaccinations and an easing of supply constraints are expected to support continued gains in economic activity and employment as well as a reduction in inflation.
Risks to the economic outlook remain, including from new variants of the virus.
Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.
The invasion of Ukraine by Russia is causing tremendous human and economic hardship.
The implications for the U.S. economy are highly uncertain, but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity.
With appropriate firming in the stance of monetary policy, the Committee expects inflation to return to its 2 percent objective and the labor market to remain strong.
In support of these goals, the Committee decided to keep raise the target range for the federal funds rate at 0 to 1/4 to 1/2 percent and anticipates that ongoing increases in the target range will be appropriate.
With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate.
The Committee decided to continue to reduce the monthly pace of its net asset purchases, bringing them to an end in early March.
Beginning in February, the Committee will increase its holdings of Treasury securities by at least $20 billion per month and of agency mortgage‐backed securities by at least $10 billion per month.
The Federal Reserve's ongoing purchases and holdings of securities will continue to foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses.
In addition, the Committee expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting.
Voting against this action was James Bullard, who preferred at this meeting to raise the target range for the federal funds rate by 0.5 percentage point to 1/2 to 3/4 percent.
Show the 6 unchanged sentences
Indicators of economic activity and employment have continued to strengthen.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run.
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.
Patrick Harker voted as an alternate member at this meeting.
Source: Board of Governors of the Federal Reserve System — the statement on federalreserve.gov · January 26, 2022
How to read this page
The page sets this statement of the Federal Open Market Committee next to the scheduled statement before it, sentence by sentence. The Fed’s sentences are shown as published, in English.
In a changed sentence, the words that were dropped are struck through and the new words are underlined. A sentence found only in the newer statement is marked as added; one found only in the older statement, as removed. Sentences that did not change are collapsed.
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