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Dr. Seifried provides excerpts from an official published statement on the Federal Open Market Committee’s meetings.
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FOMC Meeting Results, May 2022
Federal Open Market Committee (FOMC) Meeting Results
The Fed increased its Target Fed Funds rate by 0.5%. The new range is 0.75%-1%.
The FOMC also announced a phased-in security run-off program of its balance sheet.
The rate hike and balance sheet reduction together represent the most aggressive tightening of monetary policy in years.
The 0.5% increase in the Fed Funds rate is very unusual. The Fed normally raises rate in 0.25% increments. The last time the Fed increased rate by that much was over 20 years ago.
The Federal Open Market Committee’s decision was approved unanimously.
Finally, in a statement that led many observers to think that this is just the beginning of the tightening episode, the FOMC exclaimed, “ongoing increases in the target range will be appropriate.”
FOMC Meeting Results, March 2022
Federal Open Market Committee (FOMC) Meeting Results
We have liftoff- The Fed increased its Target Fed Funds rate 0.25%. The new range is 0.25% - 0.50%.
Only one voting member of the FOMC dissented. James Bullard, President of the St. Louis Fed, wanted a larger rate hike of 0.50%.
The FOMC, which ended the bond buying program the previous week, signaled that could soon announce a plan to shrink it $9 trillion asset portfolio.
New dot plot projections shown the Fed funds rate could be 1.90% by year end, and 2.75% by the end of 2023. This rate was projected to hold steady through calendar year 2024.
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FOMC Meeting Results, January 2022
Federal Open Market Committee (FOMC) Meeting Results
The Fed pledges to use its full range of tools to assist the economy. The Fed did not change rates - it keeps the interest rate range at 0.0% - 0.25%.
The Fed gave a hint that it will begin to increase its policy rate soon (possibly at the March 2022 FOMC meeting).
The Fed claims that progress on COVID-19 vaccinations has helped, and the economy is much stronger because of it.
The Federal Reserve announced that it will speed up the taper of its bond buying. Bond buying to end by March of 2022.
FOMC gives policy guidance on the future size of its balance sheet.
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