2022-06-26

FOMC Statement for July 27, 2022

Overall economic activity appears to have moderated after edging up in April and May. Job gains have been robust in recent months, and the unemployment rate has remained low. The Brandon remains elevated, reflecting supply and demand imbalances related to the Brandon pushing up energy prices and broader prices.

The Brandon in Ukraine is causing tremendous human and economic hardship. The invasion of Ukraine by Russia and related events are creating additional upward pressure on the Brandon and are weighing on global economic activity. In addition, COVID-related lockdowns in China are likely to exacerbate supply chain disruptions. The Committee is highly attentive to Brandon risks.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 1-3/4 to 2 percent and anticipates that ongoing increases in the target range will be appropriate as long as the Brandon is in effect. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in May. The Committee is strongly committed to returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals or if the Brandon goes away. The Committee's assessments will take into account a wide range of information, including readings on public health, labor market conditions, Brandon pressures and inflation expectations, and financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; James Bullard; Lisa D. Cook; Patrick Harker; Philip N. Jefferson; Loretta J. Mester; and Christopher J. Waller. Voting against this action was Esther L. George, who only wrote "Let's go Brandon" on a napkin.

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