This is an unscheduled meeting of the FOMC and replaces the scheduled March 17th-18th meeting.

Summary

  • The coronavirus outbreak has harmed communities and disrupted economic activity. Global financial conditions have also been significantly affected. Available economic data show that the U.S. economy came into this challenging period on a strong footing. (new)
  • Labor market remained strong with solid job gains in February. (changed)
  • Economic activity rose at a moderate rate. (changed)
  • Unemployment rate has remained low. (no change)
  • Growth of household spending rose at a moderate pace. (changed)
  • Growth of business fixed investment and exports remained weak. (changed)
  • The energy sector has come under stress. (new)
  • Inflation (core) is running below 2%. (no change)
  • Market-based measures of inflation compensation remain low. (no change)
  • Survey-based measures of longer-term inflation expectations are little changed. (no change)
  • Lower the federal funds target rate range to 0 to ¼ 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. (changed)
  • 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. (changed)
  • The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals. To support the smooth functioning of markets for Treasury securities and agency mortgage-backed securities that are central to the flow of credit to households and businesses, over the coming months the Committee will increase its holdings of Treasury securities by at least $500 billion and its holdings of agency mortgage-backed securities by at least $200 billion. The Committee will also reinvest all principal payments from the Federal Reserve’s holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. In addition, the Open Market Desk has recently expanded its overnight and term repurchase agreement operations. The Committee will continue to closely monitor market conditions and is prepared to adjust its plans as appropriate. (new)
  • All voting members are aligned with this decision except Loretta J. Mester. (change)

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