What the Federal Reserve stated in the meeting yesterday, September 16, 2020

The Federal Reserve is committed to using a full range of tools to give aid to the US economy during this tough time, thereby contributing to the country's goals of maximum employment and price stability.

The COVID-19 pandemic is creating enormous human and economic deprivation in the United States and around the world. Economic activity and employment have increased in recent months, but they have remained well below their levels at the beginning of the year. Weaker demand and significantly lower oil prices are holding back consumer price inflation. Overall financial conditions have improved in recent months, partly reflecting policy measures to support the economy and an influx of credit to US households and businesses.

The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will continue to affect economic activity, employment, and inflation in the near term and pose significant risks to the economic outlook in the medium term.

The Committee aims to ensure maximum employment and inflation of 2 percent over the long term. Given that inflation is consistently below this long-term target, the Committee will aim for an average inflation rate of 2 percent for some time, while long-term inflation expectations remain at 2 percent. The Committee expects to maintain a favorable monetary policy stance until these results are achieved. The Committee has decided to maintain the target range for the Federal funds rate at 0 to 1/4 percent and expects that it will be appropriate to maintain this target range until labor market conditions reach levels consistent with the Committee's estimated maximum employment and inflation rises to 2 percent and modestly exceeds 2 percent for some time. In addition, in the coming months,

In assessing the appropriate monetary policy stance, the Committee will continue to monitor the impact of incoming information on the economic outlook. The Committee will be prepared to adjust its monetary policy stance accordingly if there are risks that could hinder the achievement of the Committee's objectives. The Committee's estimates will take into account a wide range of information, including data on public health, labor market conditions, inflationary pressures and expectations, as well as financial and international developments.

The people who voted in favor of monetary policy action were Chairman Jerome Powell; Vice-Chair John C. Williams; Michelle W. Bowman; Lael Brainard; Richard H. Clarida Patrick Harker; Loretta J. Mester; and Randal K. Quarles.

Meanwhile, the text was opposed by Robert S. Kaplan, who expects that it would be appropriate to maintain the current range of targets until the Committee is confident that the economy had survived recent events and is on track to achieve its maximum employment and price stability goals set out in its new policy strategy statement, but prefers that the Committee retain more flexibility on rates at this point; and Neil Kashkari, who prefers the Committee to indicate that it expects to maintain the current target range until core inflation reaches 2 percent on a sustainable basis.

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