top of page
Gradient Background   _edited_edited.jpg
  • Writer's pictureGreg Gilbert

Federal Reserve Board Meeting Statement: Maintaining Policy Amidst Continued Economic Expansion

The Federal Reserve Board meeting, held following positive indicators of continued economic expansion, included decisions to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. This decision was supported by the assessment that while job gains remained strong and the unemployment rate stayed low, inflation remained elevated, albeit with recent easing. The Committee expressed its commitment to achieving maximum employment and 2 percent inflation over the longer run.

In terms of monetary policy implementation, several decisions were made:

  • The interest rate paid on reserve balances was maintained at 5.4 percent.

  • The Federal Open Market Committee directed the Open Market Desk to conduct open market operations to maintain the federal funds rate within the target range.

  • Standing overnight repurchase agreement operations were to be conducted with a minimum bid rate of 5.5 percent and an aggregate operation limit of $500 billion.

  • Principal payments from Treasury securities and agency debt and mortgage-backed securities exceeding specified caps were to be rolled over or reinvested, with adjustments made beginning in June.

  • The establishment of the primary credit rate at 5.5 percent was approved unanimously by the Board of Governors.

These decisions were made to support the Committee's goals of achieving maximum employment and stable inflation. The Federal Reserve emphasized its readiness to adjust the stance of monetary policy as necessary to address emerging risks. Detailed information on open market operations and reinvestments is available on the Federal Reserve Bank of New York's website.

If you would like to read more please click on this link:

9 views0 comments


bottom of page