FOMC Monetary Policy Statement March Meeting - Text>

--March 21 Statement Follows for Comparison     

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

statement issued Wednesday. The March 21 statement follows for 

comparison: 

     Information received since the Federal Open Market Committee met in 

March indicates that the labor market has continued to strengthen and 

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

have been strong, on average, in recent months, and the unemployment 

rate has stayed low. Recent data suggest that growth of household 

spending moderated from its strong fourth-quarter pace, while business 

fixed investment continued to grow strongly. On a 12-month basis, both 

overall inflation and inflation for items other than food and energy 

have moved close to 2 percent. Market-based measures of inflation 

compensation remain low; survey-based measures of longer-term inflation 

expectations are little changed, on balance. 

     Consistent with its statutory mandate, the Committee seeks to 

foster maximum employment and price stability. The Committee expects 

that, with further gradual adjustments in the stance of monetary policy, 

economic activity will expand at a moderate pace in the medium term and 

labor market conditions will remain strong. Inflation on a 12-month 

basis is expected to run near the Committees symmetric 2 percent 

objective over the medium term. Risks to the economic outlook appear 

roughly balanced. 

     In view of realized and expected labor market conditions and 

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

federal funds rate at 1-1/2 to 1-3/4 percent. The stance of monetary 

policy remains accommodative, thereby supporting strong labor market 

conditions and a sustained return to 2 percent inflation. 

     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 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 and international developments. 

The Committee will carefully monitor actual and expected inflation 

developments relative to its symmetric inflation goal. The Committee 

expects that economic conditions will evolve in a manner that will 

warrant further gradual increases in the federal funds rate; the federal 

funds rate is likely to remain, for some time, below levels that are 

expected to prevail in the longer run. However, the actual path of the 

federal funds rate will depend on the economic outlook as informed by 

incoming data. 

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

Chairman; William C. Dudley, Vice Chairman; Thomas I. Barkin; Raphael W. 

Bostic; Lael Brainard; Loretta J. Mester; Randal K. Quarles; and John C. 

Williams. 

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

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

policy meeting held March 20-21, 2018:

     Information received since the Federal Open Market Committee met in 

January indicates that the labor market has continued to strengthen and 

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

have been strong in recent months, and the unemployment rate has stayed 

low. Recent data suggest that growth rates of household spending and 

business fixed investment have moderated from their strong 

fourth-quarter readings. On a 12-month basis, both overall inflation and 

inflation for items other than food and energy have continued to run 

below 2 percent. Market-based measures of inflation compensation have 

increased in recent months but remain low; survey-based measures of 

longer-term inflation expectations are little changed, on balance. 

     Consistent with its statutory mandate, the Committee seeks to 

foster maximum employment and price stability. The economic outlook has 

strengthened in recent months. The Committee expects that, with further 

gradual adjustments in the stance of monetary policy, economic activity 

will expand at a moderate pace in the medium term and labor market 

conditions will remain strong. Inflation on a 12.month basis is expected 

to move up in coming months and to stabilize around the Committeefs 2 

percent objective over the medium term. Near-term risks to the economic 

outlook appear roughly balanced, but the Committee is monitoring 

inflation developments closely. 

     In view of realized and expected labor market conditions and 

inflation, the Committee decided to raise the target range for the 

federal funds rate to 1.1/2 to 1-3/4 percent. The stance of monetary 

policy remains accommodative, thereby supporting strong labor market 

conditions and a sustained return to 2 percent inflation. 

     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 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 and international developments. 

The Committee will carefully monitor actual and expected inflation 

developments relative to its symmetric inflation goal. The Committee 

expects that economic conditions will evolve in a manner that will 

warrant further gradual increases in the federal funds rate; the federal 

funds rate is likely to remain, for some time, below levels that are 

expected to prevail in the longer run. However, the actual path of the 

federal funds rate will depend on the economic outlook as informed by 

incoming data. 

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

Chairman; William C. Dudley, Vice Chairman; Thomas I. Barkin; Raphael W. 

Bostic; Lael Brainard; Loretta J. Mester; Randal K. Quarles; and John C. 

Williams. 

--MNI Washington Bureau, Tel: +1 202-371-2121; email: 

dcoffice@marketnews.com

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