The Federal Open Market Committee will further slow its bond buying as the economy continues to strengthen. In its December 2021 meeting statement, the Federal Reserve said that strong policy support and progress on vaccinations have benefited the economy.
Job gains have been solid 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.
The path of the economy continues to depend on the course of the virus and new variants. However, 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.
The Committee kept the target range for short-term interest rates near zero and expects it will be appropriate to maintain this target until it meets the goals of maximum employment and price stability. The FOMC will continue to monitor new information on the economy and adjust their stance on monetary policy if needed.
What does this mean for you? Let’s rewind.
December 2021 FOMC Rewind
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The views expressed here do not necessarily reflect the views of the management of the Federal Reserve Bank of San Francisco or of the Board of Governors of the Federal Reserve System.