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 July meeting, and said it remains highly attentive to inflation risks.
In its meeting statement, the FOMC reiterated that inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures. It said Russia’s war against Ukraine and related events are creating additional upward pressure on inflation and are weighing on global economic activity.
In addition to raising the policy rate, 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. The policy statement also reaffirmed that the FOMC is strongly committed to returning inflation to its 2 percent objective.
The FOMC said it will continue to monitor incoming information to assess the appropriate stance of monetary policy and will be prepared to adjust the stance as appropriate if risks emerge. The FOMC 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.
What does this mean for you? Let’s rewind.
July 2022 FOMC Rewind
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