(EUR / USD after the Fed's decision)
The Federal Reserve is giving their commitment in using their full suite of tools supporting the US economy at this trying and most challenging times, thereby contributing to its goals of maximum employment and price stability.
The COVID-19 pandemic gives enormous human and economic hardship in the United States and around the world. The economic activity and employment is in recovery but it will remain below their levels at the beginning of the year. The weaker demand and earlier falling of oil prices is keeping the consumer price inflation at the bay. The overall financial conditions remain favorable, partly reflecting policy measures to support the economy and the flow of credit to households and businesses in the United States.
The economy's track will significantly depend on the spread of the virus as the ongoing public health crisis will continue to put pressure on economic activity, employment and inflation in the short term and poses significant risks to the economic outlook in the medium term.
The Committee aims to achieve maximum employment and inflation of 2% in the long term. Since, the inflation will be consistently below this long-term target, the Committee will aim for inflation to be moderately above 2% for some time, for inflation to average 2% over time and for long-term inflation, expectations will remain stable at 2% The Committee expects to maintain a flexible monetary policy until these results are achieved. They decided to maintain the target range for the Federal funds rate at 0 to a% and expect that it will be appropriate to maintain this target range until labor market conditions reach the levels agreed with the Committee. The estimate of maximum employment and inflation went up to 2% and should moderately exceed 2% for quite some time. In addition, the Federal Reserve will continue to increase its holdings of Treasuries by at least $ 80 billion per month and agency-backed mortgage-backed securities by at least $ 40 billion per month until significant further progress is made on maximum employment and asset price, the stability goal. These asset purchases will contribute to the smooth functioning of the market and favorable financial conditions, thereby supporting the flow of credit to households and businesses. The Federal Reserve will continue to increase its holdings of Treasuries by at least $ 80 billion per month and agency mortgage-backed securities by at least $ 40 billion per month until significant further progress will be made in meeting the Committee's goals for maximum Employment and Price Stability. These asset purchases contribute to a smooth market and favorable financial conditions, thereby supporting the flow of credit to households and businesses. The Federal Reserve will continue to increase its holdings of Treasuries by at least $ 80 billion per month and agency mortgage-backed securities by at least $ 40 billion per month until significant further progress is made in meeting the Committee's goals for maximum Employment and Price Stability ... These asset purchases contribute to the smooth functioning of the market and favorable financial conditions, thereby supporting the flow of credit to households and businesses. The Federal Reserve will continue to increase its holdings of Treasuries by at least $ 80 billion per month and agency mortgage-backed securities by at least $ 40 billion per month until significant further progress is made in meeting the Committee's goals for maximum Employment and Price Stability ... These asset purchases contribute to the smooth functioning of the market and favorable financial conditions, thereby supporting the flow of credit to households and businesses. The Federal Reserve will continue to increase its holdings of Treasuries by at least $ 80 billion per month and agency mortgage-backed securities by at least $ 40 billion per month until significant further progress is made in meeting the Committee's goals for maximum Employment and Price Stability ... These asset purchases contribute to the smooth functioning of the market and favorable financial conditions, thereby supporting the flow of credit to households and businesses.
In assessing the appropriate monetary policy stance, the Committee will continue to monitor the impact of incoming information on the economic outlook. The Committee will be prepared to adjust monetary policy accordingly if risks will arise that could hinder the achievement of the Committee's objectives. The Committee's assessments will take into account a wide range of information, including data on public health, labor market conditions, inflationary pressures and inflation expectations, as well as financial and international developments.
Voted for monetary policy measures by Jerome H. Powell, Chairman; John C. Williams, Vice-Chairman; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neil Kashkari; Loretta J. Master; and Randal K. Quarles.
