FOMC Meeting Results - Northwest Farm Credit Services
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Federal Open Market Committee (FOMC) Meeting Results. Surprise! The Fed increased its Target Fed Funds rate by 0.75%, instead of the predicted 0.5%. 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Dr.EdSeifried,ChiefEconomistandStrategicAdviseratBNKAdvisoryGroup,sharesexcerptsfromtheofficialpublishedFOMCmeetingstatementsinhispublishedstatementbelow. RecentlyPublished FOMCMeetingResults,June2022 Tags: FOMCMeetingResults EconomicUpdates Economy FederalOpenMarketCommittee(FOMC)MeetingResultsSurprise!TheFedincreaseditsTargetFedFundsrateby0.75%,insteadofthepredicted0.5%.Thenewrangeis1.50%-1.75%. TheCommitteedeclareditishighlyattentivetorisksofhighinflation.Thevotewasnotunanimous!VotingagainstthisactionwasEstherL.George,whopreferredatthismeetingtoraisethetargetrangeforthefederalfundsratebyonly0.5percentagepointtoarangeof1-1/4percentto1-1/2percent.TheFOMC,whichbegantoshrinkitssecuritiesportfolioonJune1,2022,announceditwillcontinuereducingitsholdingsofTreasurysecuritiesandagencydebtandagencymortgage-backedsecurities,asdescribedinthePlansforReducingtheSizeoftheFederalReserve'sBalanceSheetthatitannouncedattheMay2022FOMCmeeting.TheCommitteeemphasizedthatitisstronglycommittedtoreturninginflationtoits2%objective.NewdotplotprojectionsshowntheFedfundsratecouldbeashighas3.75%byyearend,and4.25%bytheendof2023. ReadArticle FOMCMeetingResults,May2022 Tags: FOMCMeetingResults EconomicUpdates Economy FederalOpenMarketCommittee(FOMC)MeetingResultsTheFedincreaseditsTargetFedFundsrateby0.5%. Thenewrangeis0.75%-1%. TheFOMCalsoannouncedaphased-insecurityrun-offprogramofitsbalancesheet.Theratehikeandbalancesheetreductiontogetherrepresentthemostaggressivetighteningofmonetarypolicyinyears.The0.5%increaseintheFedFundsrateisveryunusual.TheFednormallyraisesratein0.25%increments.ThelasttimetheFedincreasedratebythatmuchwasover20yearsago. TheFederalOpenMarketCommittee’sdecisionwasapprovedunanimously.Finally,inastatementthatledmanyobserverstothinkthatthisisjustthebeginningofthetighteningepisode,theFOMCexclaimed,“ongoingincreasesinthetargetrangewillbeappropriate.” ReadArticle FOMCMeetingResults,March2022 Tags: FOMCMeetingResults EconomicUpdates Economy FederalOpenMarketCommittee(FOMC)MeetingResultsWehaveliftoff-TheFedincreaseditsTargetFedFundsrate0.25%.Thenewrangeis0.25%-0.50%.OnlyonevotingmemberoftheFOMCdissented.JamesBullard,PresidentoftheSt.LouisFed,wantedalargerratehikeof0.50%.TheFOMC,whichendedthebondbuyingprogramthepreviousweek,signaledthatcouldsoonannounceaplantoshrinkit$9trillionassetportfolio.NewdotplotprojectionsshowntheFedfundsratecouldbe1.90%byyearend,and2.75%bytheendof2023.Thisratewasprojectedtoholdsteadythroughcalendaryear2024. ReadArticle ViewAll
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