Federal Reserve Board / FOMC · FOMC statement

Filed 2022-07-27 · CY2022 Q3 · 333 words

Palanor summary

Recent spending and production indicators have softened. Job gains remain robust and unemployment is low. Inflation is elevated due to supply and demand imbalances, higher food and energy prices, and broader price pressures. The war in Ukraine is causing economic hardship and adding to inflationary pressures. The Fed raised the federal funds rate target to 2.25%-2.50% and anticipates further increases. The Committee is strongly committed to returning inflation to its 2% goal.

Written by Palanor from the full document. Not the Federal Reserve’s words.

Sentiment

-0.60

Confidence

80%

Scored on the whole document. No single passage carries these two numbers, so none is highlighted.

July 27, 2022

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EDT

T1Recent indicators of spending and production have softened. Nonetheless, T2job gains have been robust in recent months, and the unemployment rate has remained low. T3Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.

T4Russia's war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation 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, T5the Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, T6the 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. T7The 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. The Committee's assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation 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; Michael S. Barr; Michelle W. Bowman; Lael Brainard; James Bullard; Susan M. Collins; Lisa D. Cook; Esther L. George; Philip N. Jefferson; Loretta J. Mester; and Christopher J. Waller.

Implementation Note issued July 27, 2022

Mentions · how they’re counted

Category	Word counter	Model’s count
AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM	0	0
Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring	—	0
Recession recession, downturn, contraction, slowdown	0	2
Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy	0	0
Buybacks share repurchase, buyback program	—	0

Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.

Source: Board of Governors of the Federal Reserve System · public domain · Highlights by Palanor