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FOMC statement

Federal Reserve Board / FOMC · FOMC statement

Filed 2023-03-22 · CY2023 Q1 · 395 words

Read the original on federalreserve.gov ↗

Palanor summary

The Fed raised the federal funds rate to 4.75-5.00%, citing robust job gains and elevated inflation. Recent banking developments are expected to tighten credit conditions, with uncertain effects on activity and hiring. The Committee anticipates some additional policy firming may be appropriate to achieve a sufficiently restrictive stance and return inflation to 2%.

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

Sentiment

-0.30

Confidence

70%

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

March 22, 2023

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EDT

Recent indicators point to modest growth in spending and production. T1Job gains have picked up in recent months and are running at a robust pace; the unemployment rate has remained low. T2Inflation remains elevated.

The U.S. banking system is sound and resilient. T3Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains 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, T4the Committee decided to raise the target range for the federal funds rate to 4-3/4 to 5 percent. T5The Committee will closely monitor incoming information and assess the implications for monetary policy. The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. In determining the extent of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.

In addition, T6the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. 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. The Committee's assessments will take into account a wide range of information, including readings on 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; Lisa D. Cook; Austan D. Goolsbee; Patrick Harker; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; and Christopher J. Waller.

For media inquiries, please email [email protected] or call 202-452-2955.

Implementation Note issued March 22, 2023

Mentions · how they’re counted

CategoryUnderlinedWord counterModel’s count
AI

AI, artificial intelligence, generative AI, machine learning, large language model, LLM

000
Layoffs

layoffs, RIF, headcount reduction, workforce optimization, restructuring

0—0
Recession

recession, downturn, contraction, slowdown

000
Tariffs

tariff, trade war, trade barriers, trade restrictions, trade policy

000
Buybacks

share repurchase, buyback program

0—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