The Federal Reserve is committed to using its full range of tools to support the
U.S. economy in this challenging time, thereby promoting its maximum employment and
price stability goals.
The coronavirus outbreak is causing tremendous human and economic hardship
across the United States and around the world. Following sharp declines, economic
activity and employment have picked up somewhat in recent months but remain well
below their levels at the beginning of the year. Weaker demand and significantly lower
oil prices are holding down consumer price inflation. Overall financial conditions have
improved in recent months, 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 will depend significantly on the course of the virus. The
ongoing public health crisis will weigh heavily on economic activity, employment, and
inflation in the near term, and poses considerable risks to the economic outlook over the
medium term. In light of these developments, the Committee decided to maintain the
target range for the federal funds rate at 0 to 1/4 percent. The Committee expects to
maintain this target range until it is confident that the economy has weathered recent
events and is on track to achieve its maximum employment and price stability goals.
The Committee will continue to monitor the implications of incoming information
for the economic outlook, including information related to public health, as well as global
developments and muted inflation pressures, and will use its tools and act as appropriate
to support the economy. In determining the timing and size of future adjustments to the
stance of monetary policy, the Committee will assess realized and expected economic
conditions relative to its maximum employment objective and its symmetric 2 percent
inflation objective. This assessment will take into account a wide range of information,
including measures of labor market conditions, indicators of inflation pressures and
inflation expectations, and readings on financial and international developments.
To support the flow of credit to households and businesses, over coming months
the Federal Reserve will increase its holdings of Treasury securities and agency
residential and commercial mortgage-backed securities at least at the current pace to
sustain smooth market functioning, thereby fostering effective transmission of monetary
policy to broader financial conditions. In addition, the Open Market Desk will continue
to offer large-scale overnight and term repurchase agreement operations. The Committee
will closely monitor developments and is prepared to adjust its plans as appropriate.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C.
Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick
Harker; Robert S. Kaplan; Neel Kashkari; Loretta J. Mester; and Randal K. Quarles.