Information received since the Federal Open Market Committee met in January indicates that growth in economic activity slowed during the winter months, in part reflecting adverse weather conditions. Labor market indicators were mixed but on balance showed further improvement. The unemployment rate, however, remains elevated. Household spending and business fixed investment continued to advance, while the recovery in the housing sector remained slow. Fiscal policy is restraining economic growth, although the extent of restraint is diminishing. Inflation has been running below the Committee’s longer-run objective, but longerterm inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace and labor market conditions will continue to improve gradually, moving toward those the Committee judges consistent with its dual mandate. The Committee sees the risks to the outlook for the economy and the labor market as nearly balanced. The Committee recognizes that inflation persistently below its 2 percent objective could pose risks to economic performance, and it is monitoring inflation developments carefully for evidence that inflation will move back toward its objective over the medium term.
The Committee currently judges that there is sufficient underlying strength in the broader economy to support ongoing improvement in labor market conditions. In light of the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions since the inception of the current asset purchase program, the Committee decided to make a further measured reduction in the pace of its asset purchases. Beginning in April, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $25 billion per month rather than $30 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $30 billion per month rather than $35 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee’s sizable and still-increasing holdings of longer-term securities should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative, which in turn should promote a stronger economic recovery and help to ensure that inflation, over time, is at the rate most consistent with the Committee’s dual mandate.
The Committee will closely monitor incoming information on economic and financial developments in coming months and will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until the outlook for the labor market has improved substantially in a context of price stability. If incoming information broadly supports the Committee’s expectation of ongoing improvement in labor market conditions and inflation moving back toward its longer-run objective, the Committee will likely reduce the pace of asset purchases in further measured steps at future meetings. However, asset purchases are not on a preset course, and the Committee’s decisions about their pace will remain contingent on the Committee’s outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of such purchases.
To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate. In determining how long to maintain the current 0 to 1/4 percent target range for the federal funds rate, the Committee will assess progress -- both realized and expected
toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored.
When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent. The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run. With the unemployment rate nearing 6-1/2 percent, the Committee has updated its forward guidance. The change in the Committee’s guidance does not indicate any change in the Committee’s policy intentions as set forth in its recent statements.
Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Richard W. Fisher; Sandra Pianalto; Charles I. Plosser; Jerome H. Powell; Jeremy C. Stein; and Daniel K. Tarullo.
Voting against the action was Narayana Kocherlakota, who supported the sixth paragraph, but believed the fifth paragraph weakens the credibility of the Committee’s commitment to return inflation to the 2 percent target from below and fosters policy uncertainty that hinders economic activity.
FED. Texto completo del comunicado en inglés
- 1Cinco pasos para alcanzar la jubilación soñada y no perder el sueño en el camino
- 2Estas son las compañías que más están comprando y vendiendo los gurús
- 3"En base a la repetición del patrón sobre el S&P500, la tendencia alcista puede persistir hasta diciembre de 2032"
- 4"Las socimis suponen una forma alternativa de invertir"
- 5Análisis Técnico de Endesa y Bankia
- 6Análisis Técnico de Inmobiliaria Colonial y Repsol
- 7Flash futuro del DAX: en zonas claves a corto plazo
- 8Los osos muy bien posicionados para extender su dominio en Euskaltel
- 9Airbus quiere pero no puede
- 10Tres cosas que hemos hecho bien con la crisis... y otras tres que todavía nos quedan
- 1Siemens Gamesa y Vestas: "cuando las barbas de tu vecino veas cortar"
- 2Los bancos vuelven a situar al Ibex 35 por debajo del nivel de 10.500 puntos
- 3El Ibex 35 termina la semana en negativo, pero logra aguantarse por encima de 10.300 puntos
- 4Estas son las tecnológicas más sobrecompradas y sobrevendidas
- 5Vidrala consolida niveles antes de volver a atacar sus máximos históricos
- 6EA y Activisión, las que mejor juegan en las carteras de los inversores
- 7El terror pasa factura en bolsa al sector de ocio y turismo
- 8UBS alerta que la libra está extremadamente infravalorada
- 9¿Se ha acabado ya la depreciación del dólar?
- 10El Ibex35 se deja un 1,3% y pierde los 10.300 puntos tras los atentados de Barcelona y el cierre a la baja de Wall Street
- 1"Iberdrola es el único grande del Ibex que tiene presión compradora clara"
- 2El IBEX Small Cap presenta una robusta estructura alcista
- 3Acciona: inicio de cobertura
- 4La Industria Química española en un momento clave
- 5Positiva reacción de las compras al cierre semanal del viernes
- 6Europa se recupera del amago correctivo de los osos
- 7Buscamos dos oportunidades en los productos químicos europeos