FOMC Monetary Policy Statement March 19-20 Meeting - Text>

--January 20 Statement Follows for Comparison     

     WASHINGTON (MNI) - The following is the complete text of the FOMC 

statement issued Wednesday. The January 20 statement follows for 

comparison: 

     Information received since the Federal Open Market Committee met in 

January indicates that the labor market remains strong but that growth 

of economic activity has slowed from its solid rate in the fourth 

quarter. Payroll employment was little changed in February, but job 

gains have been solid, on average, in recent months, and the 

unemployment rate has remained low. Recent indicators point to slower 

growth of household spending and business fixed investment in the first 

quarter. On a 12-month basis, overall inflation has declined, largely as 

a result of lower energy prices; inflation for items other than food and 

energy remains near 2 percent. On balance, market-based measures of 

inflation compensation have remained low in recent months, and 

survey-based measures of longer-term inflation expectations are little 

changed. 

     Consistent with its statutory mandate, the Committee seeks to 

foster maximum employment and price stability. In support of these 

goals, the Committee decided to maintain the target range for the 

federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to 

view sustained expansion of economic activity, strong labor market 

conditions, and inflation near the Committees symmetric 2 percent 

objective as the most likely outcomes. In light of global economic and 

financial developments and muted inflation pressures, the Committee will 

be patient as it determines what future adjustments to the target range 

for the federal funds rate may be appropriate to support these outcomes. 

     In determining the timing and size of future adjustments to the 

target range for the federal funds rate, the Committee will assess 

realized and expected economic conditions relative to its maximum 

employment objective and its symmetric 2 percent inflation objective. 

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 and 

international developments. 

     Voting for the FOMC monetary policy action were: Jerome H. Powell, 

Chairman; John C. Williams, Vice Chairman; Michelle W. Bowman; Lael 

Brainard; James Bullard; Richard H. Clarida; Charles L. Evans; Esther L. 

George; Randal K. Quarles; and Eric S. Rosengren      

-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*- 

     The following is the text of the FOMC statement released after the 

policy meeting held January 19-20:

     Information received since the Federal Open Market Committee met in 

December indicates that the labor market has continued to strengthen and 

that economic activity has been rising at a solid rate. Job gains have 

been strong, on average, in recent months, and the unemployment rate has 

remained low. Household spending has continued to grow strongly, while 

growth of business fixed investment has moderated from its rapid pace 

earlier last year. On a 12-month basis, both overall inflation and 

inflation for items other than food and energy remain near 2 percent. 

Although market-based measures of inflation compensation have moved 

lower in recent months, survey-based measures of longer-term inflation 

expectations are little changed. 

     Consistent with its statutory mandate, the Committee seeks to 

foster maximum employment and price stability. In support of these 

goals, the Committee decided to maintain the target range for the 

federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to 

view sustained expansion of economic activity, strong labor market 

conditions, and inflation near the Committees symmetric 2 percent 

objective as the most likely outcomes. In light of global economic and 

financial developments and muted inflation pressures, the Committee will 

be patient as it determines what future adjustments to the target range 

for the federal funds rate may be appropriate to support these outcomes. 

     In determining the timing and size of future adjustments to the 

target range for the federal funds rate, the Committee will assess 

realized and expected economic conditions relative to its maximum 

employment objective and its symmetric 2 percent inflation objective. 

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 and 

international developments.  

     Voting for the FOMC monetary policy action were: Jerome H. Powell, 

Chairman; John C. Williams, Vice Chairman; Michelle W. Bowman; Lael 

Brainard; James Bullard; Richard H. Clarida; Charles L. Evans; Esther L. 

George; Randal K. Quarles; and Eric S. Rosengren.    

--MNI Washington Bureau, Tel: +1 202-371-2121; email: dcoffice@marketnews.com

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