The Federal Open Market Committee (FOMC) raised the target range for its short-term policy rate, the federal funds rate, 0.75 percentage points at its June meeting. In its post-meeting statement, the FOMC reiterated that inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.
The FOMC stated that it is highly attentive to inflation risks. It said the invasion of Ukraine by Russia and related events are creating additional upward pressure on inflation and weighing on global economic activity. In addition, COVID-related lockdowns in China are likely to exacerbate supply chain disruptions.
In working toward its goal of 2% inflation on average, the FOMC said it will continue reducing its holdings of Treasury securities, agency debt, and agency mortgage-backed securities as described in the Plans for Reducing the Size of the Federal Reserve’s Balance Sheet, along with raising the federal funds rate.
The FOMC also said it will continue to monitor incoming information to assess the appropriate stance of monetary policy, taking into account readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
What does this mean for you? Let’s rewind.
June 2022 FOMC Rewind
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