Federal reserve news

Here are some recent news and updates from the Federal Reserve:

Recent Decisions

• On July 28, 2022, the Federal Open Market Committee (FOMC) raised the federal funds target rate by 75 basis points to a range of 2.25% to 2.5%, marking the fifth consecutive rate hike.
• On June 15, 2022, the FOMC raised the federal funds target rate by 75 basis points to a range of 1.75% to 2.0%.
• On May 4, 2022, the FOMC raised the federal funds target rate by 50 basis points to a range of 1.0% to 1.25%.

Economic Projections

• The FOMC's latest economic projections, released on July 27, 2022, indicate that the committee expects the economy to grow at a pace of 1.7% in 2022, down from its previous forecast of 2.8%.
• The committee also expects inflation to remain above its 2% target through 2024, with the PCE price index expected to average 5.7% in 2022, 3.1% in 2023, and 2.6% in 2024.

Monetary Policy

• The FOMC has been gradually reducing its balance sheet by allowing maturing securities to roll off without replacing them, a process known as quantitative tightening (QT).
• The committee has also been selling off some of its holdings of Treasury securities and mortgage-backed securities to reduce its balance sheet further.

Inflation

• The Consumer Price Index (CPI) rose 9.1% in June 2022, the largest 12-month increase since November 1981.
• The Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation measure, rose 6.8% in June 2022, the largest 12-month increase since March 1982.

Housing Market

• The FOMC has been closely monitoring the housing market, which has been affected by rising mortgage rates and higher construction costs.
• The committee has expressed concerns about the potential impact of higher interest rates on the housing market and the broader economy.

Other News

• The Fed has been working to improve its communication with the public and financial markets, including the release of more detailed economic projections and the use of more transparent language in its policy statements.
• The Fed has also been exploring new ways to communicate with the public, including the use of social media and online platforms.