FOMC Releases

FOMC Statement | June 2020

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. The virus and the measures taken to
protect public health have induced sharp declines in economic activity and a surge in job
losses. Weaker demand and significantly lower oil prices are holding down consumer
price inflation. Financial conditions have improved, in part reflecting policy measures to
support the economy and the flow of credit to U.S. households and businesses.
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.