Reuters - Following is the full statement issued on 22 September 2021 by the Federal Open Market Committee:
The Federal Reserve is committed to using its full range of tools to support the U.S. economy during this difficult time, thereby promoting its maximum employment and price stability goals.
With improvements in vaccinations and strong policy support, indicators of economic activity and employment have continued to grow. The sectors most negatively affected by the pandemic have improved in recent months, but the rise of COVID - 19 cases has slowed their recovery. Inflation is transitory, largely reflecting elevated factors. Overall the financial conditions are accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.
The path of the economy continues to depend on the virus-course in the last 10 years. Progress in vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain.
The Committee seeks to achieve maximum inflation and employment rates at the rate of 2 percent over the longer run. With inflation running persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and long term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved. The Committee decided to maintain the target range for the federal funds rate at 0 to 1 4 percent and anticipates it will be appropriate to maintain this target range until the labor market conditions have reached levels consistent with the Committee s assessments of maximum employment and inflation that have risen to 2 percent and is on track to moderately exceed 2 percent for some time. In December, the Committee indicated that it would continue to increase its holding of Treasury securities by at least $40 billion per month and agencies mortgage-backed securities by at least $80 billion per month until substantial further progress has been made toward its maximum employment and price stability goals. Since then, the economy has made progress toward these goals. If progress continues broadly as expected, the Committee judges that a moderated pace of asset purchases may soon be warranted. These asset purchases help foster good market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses.
In assessing the appropriate policy position, the Committee will continue to monitor the consequences of incoming information for 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. The Committee s assessments will take into account a wide range of information, including readings on financial and international health, labor market conditions, inflation pressures and inflation expectations, and public health issues.
Voting for the monetary policy action were Jrome H. Powell, Chair; Thomas I. Barkin, Vice President; John C. Williams; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Mary C. Daly; Charles L. Evans; Randal K. Quarles; and Christopher J. Waller had to win today.