![]() ![]() ![]() In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, 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. Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5 to 5-1/4 percent. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee remains highly attentive to inflation risks. The extent of these effects remains uncertain. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. Job gains have been robust in recent months, and the unemployment rate has remained low. Recent indicators suggest that economic activity has continued to expand at a modest pace. The private-sector job openings rate in April-as measured by the Job Openings and Labor Turnover Survey-was unchanged from its relatively high first-quarter average, though it was lower than a year earlier. In aggregate, the labor force participation rate held steady in April and May, and the employment-to-population ratio ticked down. On balance, the unemployment rate for African Americans moved up to 5.6 percent, while the jobless rate for Hispanics moved down to 4.0 percent. The unemployment rate edged up, on net, but was still at a low level of 3.7 percent in May. Total nonfarm payroll employment increased at a robust pace during those two months. Labor market conditions remained tight in April and May. Consumer price inflation-as measured by the 12-month percent change in the price index for PCE-continued to be elevated in April. Labor market conditions remained tight in recent months, as job gains were robust and the unemployment rate was low. The information available at the time of the June 13–14 meeting suggested that real gross domestic product (GDP) was expanding at a modest pace in the second quarter. With regard to inflation expectations, respondents marked up their projections for quarterly core personal consumption expenditures (PCE) inflation in the second and third quarters of this year, while projections for later quarters were little changed. Overall, respondents generally continued to expect that any downturn would be neither deep nor prolonged. Canada SDS to accept PTE Academic test – Check eligibility score, dateĭesk survey respondents still saw a recession occurring in the near term as quite likely, but the expected timing was again pushed later, as economic data pointed to the continued resilience of economic activity. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |