Objective: Since the Federal Reserve Reform Act 1977, congress has directed the Fed to conduct monetary policy with the objective of (a) maximum sustainable employment, (b) stable prices, and (c) moderate longterm interest rates. Objectives (a) and (b) are often referred to as the Fed's dual mandate. Since 2012, the Fed has stated that inflation of 2%, measured by PCE, is most consistent with its statutory mandate of price stability.
The Unemployment rate fell to 6.0% in March, compared to 6.2% for February. Inflation for February remained below target with the PCE Price Index standing at 1.6% Y/Y (1.5% prior). Note, CPI for February printed at 1.7% Y/Y.
Situation: The FOMC left rates unchanged at their March meeting with the Fed Funds Rate remaining 0.00-0.25%. Asset purchases were also unchanged at a total of $120 billion per month.
In their accompanying statement, the Fed reiterated its commitment to use the full range of tools to support the economy and stated that overall financial conditions remain accommodative. Additionally, the Fed noted that indicators of economic activity and employment have turned up recently, following a moderation in the pace of the recovery.
The Unemployment rate fell to 6.0% in March, compared to 6.2% for February. Inflation for February remained below target with the PCE Price Index standing at 1.6% Y/Y (1.5% prior). Note, CPI for February printed at 1.7% Y/Y.
Situation: The FOMC left rates unchanged at their March meeting with the Fed Funds Rate remaining 0.00-0.25%. Asset purchases were also unchanged at a total of $120 billion per month.
In their accompanying statement, the Fed reiterated its commitment to use the full range of tools to support the economy and stated that overall financial conditions remain accommodative. Additionally, the Fed noted that indicators of economic activity and employment have turned up recently, following a moderation in the pace of the recovery.