![]() The focus is typically on employment and inflation, given the Fed’s dual mandate of maximum employment and price stability. The first feature of an FOMC statement sets the stage by summarizing the state of the current U.S. ![]() You can always find the most recent statements at the Board of Governors website. The decision process: Factors the FOMC plans to consider in upcoming policy decisions.įor purposes of illustration only, examples below were taken from the first FOMC statement of 2019, issued on Jan. Policy decision: What decision was made at the meeting?įorward guidance: Communication about the likely future course of monetary policy. Monetary policy goals: Focused on the Fed’s dual mandate of maximum sustainable employment and price stability. Recent economic developments: What has happened since the last meeting? ![]() The next time an FOMC statement is released, show off your knowledge to family and friends by following this guide to understanding its words.įOMC Statements at a Glance You don’t have to be an economist to understand the FOMC’s communications. In January 2000, the FOMC announced it would issue a statement after each regular meeting, even if there was no change in policy.Īlthough forecasting the economy is a complex undertaking, modern FOMC statements follow a simple structure with distinct parts. ![]() Subsequent statements grew to several (albeit brief) paragraphs that also included a description of the state of the economy and the rationale for the FOMC’s policy action. The first statement appeared in 1994, just four sentences, focused only on the Fed’s decision to change the federal funds target interest rate. Until early 1994, the Fed did not issue a statement after an FOMC meeting.
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