Federal Reserve issues FOMC statement

removed: Indicators of added: Although overall economic activity added: edged down in the first quarter, household spending and removed: employment have continued to strengthen. added: business fixed investment remained strong. Job gains have been removed: strong added: robust in recent months, and the unemployment rate has declined substantially. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.

The invasion of Ukraine by Russia is causing tremendous human and economic hardship. The implications for the U.S. economy are highly removed: uncertain, but in the near term the added: uncertain. The invasion and related events are removed: likely to create added: creating additional upward pressure on inflation and added: are likely to weigh on economic activity. added: In addition, COVID-related lockdowns in China are likely to exacerbate supply chain disruptions. 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. With appropriate firming in the stance of monetary policy, the Committee expects inflation to return to its 2 percent objective and the labor market to remain strong. In support of these goals, the Committee decided to raise the target range for the federal funds rate to removed: 1/4 added: 3/4 to removed: 1/2 added: 1 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee removed: expects added: decided to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities removed: at a coming meeting. added: on June 1, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in conjunction with this statement.

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 removed: Committee's added: 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; Michelle W. Bowman; Lael Brainard; added: James Bullard; Esther L. George; Patrick Harker; Loretta J. Mester; and Christopher J. Waller. removed: Voting against this action was James Bullard, who preferred at this meeting to raise the target range for the federal funds rate by 0.5 percentage point to 1/2 to 3/4 percent. Patrick Harker voted as an alternate member at this meeting.