FEDERAL OPEN MARKET COMMITTEE (FOMC) MEETING RESULTS:
DATE: November 1 - 2, 2022
- 1The Fed increased its Target Fed Funds rate by 0.75%. The Fed Funds Target range is now 3.75% - 4%.
- 2Consistent with recent months, the vote was unanimous!
- 3Steps toward quantitative tightening will proceed as the FOMC continues to, reduce its holdings of Treasury securities, agency debt and agency mortgage-backed securities, as outlined in the Plans of Reducing the size of the Federal Reserve's Balance Sheet as announced at the May 2022 FOMC meeting.
- 4The Committee emphasized that its strong commitment to returning inflation to its 2% objective.
ECONOMIC HIGHLIGHTS: Economic activity continue to weaken, and inflation remains too high!
- Recent indicators point to modest growth in spending and production.
- Job gains have been robust in recent months, and the unemployment rate has remained low.
- Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.
- Russia's war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity.
- The Committee is highly attentive to inflation risks.
ANNOUNCEMENTS: Fed funds rate increased. Fed funds range raised by a 0.75% to anew range of 3.75% to 4%, and balance sheet reductions continue.
- The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2%over time.
- In determining the pace 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.
VOTING RESULTS: No dissenting votes
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lael Brainard; James Bullard; Susan
M. Collins; Lisa D. Cook; Ester L. George; Philip N. Jefferson; Loretta J. Mester; and Christopher J. Waller.
NEXT MEETING: December 13 - 14, 2022
ABOUT THE AUTHOR
Dr. Edmond J. Seifried, PhD | Chief Economist
Dr. Seifried is Professor Emeritus of Economics and Business at Lafayette College in Easton, Pennsylvania. He also serves as the Chief Economist for SB Value Partners, L.P., and Executive Consultant for the Sheshunoff CEO Affiliation Programs.
Dr. Seifried serves as the dean of the Virginia and West Virginia Banking Schools and has served on the faculty of numerous banking schools including: Stonier Graduate School of Banking, and the Graduate School of Banking of the South.