US Fed Reserve Policy
Interest Rates Unchanged
ON INFLATION
• Aims to achieve inflation moderately above 2% for some time Longer-term inflation expectations remain well anchored at 2%
FED'S OWN DOT PLOT
* Next rate hike in 2023
• 7 out of 18 members looking for 2022 rate raise
2 STANDING REPURCHASE AGREEMENTS
• Domestic standing repo facility (SRF)
• Repo facility for foreign and international monetary authorities
• To serve towards effective implementation of monetary policy
TAPER HINTS
• Reiterates pledge to continue bond buying program until 'substantial further progress' is seen
* Notes that economy has made progress towards the goals
• Economic indicators and employment has shown strength
• Sectors most adversely affected by the pandemic have shown improvement but have not fully recovered
• Committee will continue to monitor progress in the coming meetings
• Economy has made progress towards goals laid to taper
• Holds rates unchanged, FOMC vote was unanimous
• Establishes domestic and foreign standing repo facilities
• Leaves target range for benchmark rate at zero to 0.25%
• Leaves IORB at 0.15%, discount rate at 0.25%
• To keep buying $80 bn treasuries, $40 bn MBS every month
