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FOMC statement

Federal Reserve Board / FOMC · FOMC statement

Filed 2023-02-01 · CY2023 Q1 · 363 words

Read the original on federalreserve.gov ↗

Palanor summary

Recent indicators show modest growth in spending and production. Job gains have been robust and unemployment is low. Inflation has eased but stays elevated. The Committee raised the federal funds rate target to 4.5-4.75%. It anticipates further increases will be needed to attain a sufficiently restrictive policy stance to bring inflation back to 2% over time.

Written by Palanor from the full document. Not the Federal Reserve’s words.

Sentiment

-0.40

Confidence

80%

Scored on the whole document. No single passage carries these two numbers, so none is highlighted.

February 01, 2023

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EST

Recent indicators point to modest growth in spending and production. T1Job gains have been robust in recent months, and the unemployment rate has remained low. T2Inflation has eased somewhat but remains elevated.

T3Russia's war against Ukraine is causing tremendous human and economic hardship and is contributing to elevated global uncertainty. The Committee is highly attentive to inflation risks.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, T4the Committee decided to raise the target range for the federal funds rate to 4-1/2 to 4-3/4 percent. The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. In determining the extent of future increases in the target range, 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.

In addition, T5the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. T6The Committee is strongly committed to returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lael Brainard; Lisa D. Cook; Austan D. Goolsbee; Patrick Harker; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; and Christopher J. Waller.

For media inquiries, please email [email protected] or call 202-452-2955.

Implementation Note issued February 1, 2023

Mentions · how they’re counted

CategoryUnderlinedWord counterModel’s count
AI

AI, artificial intelligence, generative AI, machine learning, large language model, LLM

000
Layoffs

layoffs, RIF, headcount reduction, workforce optimization, restructuring

0—0
Recession

recession, downturn, contraction, slowdown

000
Tariffs

tariff, trade war, trade barriers, trade restrictions, trade policy

000
Buybacks

share repurchase, buyback program

0—0

Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.

Source: Board of Governors of the Federal Reserve System · public domain · Highlights by Palanor