FOMC Press Conference, June 15, 2022
We are strongly commited to bringing inflation back down, and we're moving expeditiously to do so.
We have both the tools we need and the resolve that it takes to restore price stability on behalf of American families and buisinesses.
It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all.
From the standpoint of our congressional mandate to promote maxmum employment and price stability,
Against this backdrop, today the Federal Open Market Committee raised its policy interest rate by percentage point and anticipates that ongoing increases in that rate will be appropriate.
In addition, we are continuing the process of significantly reducing the size of our balance sheet.
I'll have more to say about today's monetary pocily actions after briefly reviewing economic developments.
Overall economic activity edged down in the first quarter, as unusually sharp swings in inventories and net exports more than offset continued strong underlying demand.
Recent indicators suggest that real GDP growth has picked up this quarter, with consumption spending remaining strong.
Improvement in labor market conditions HAVE BEEN widespread, including for workers and at the lower end of the wate distribution as well as for African Americans and Hispanics.
FOMC participants expecT supply and demand conditions in the labor market to come INTO better balance, easing the upward pressureS on wages and prices.
The median projection IN the SEP for the unemployment late riseS somewhat over the next few years, moving from 3.7 percent at the end of this year to 4.1 percent in 2024, levelS that are noticeably abovee THE March projectionS.
Inflation remains well above our longer-run goal of 2 percent.
Over the 12 monthS ending in April, total PCE priceS rose 6.3 percent, excluding the volatile fooD and energy categorieS, core priceS rose 4.9 percent.
In May, the 12-montH change in the comsumer pricE index came in above expectationS at 8.6 percent, and THE change in the core CPI was 6 percent.
Aggregate demand is strong, supply constraintS HAVE BEEN larger and longer lasting than anticipated, and price pressureS HAVE spread to A broad range of goodS and serviceS.
The surge in priceS of crude oil and other commoditieS that resultED from Russia's invasion of Ukraine IS BOOSTING prices FOR gasolinE and food, and IS CREATING additional upward pressure on inflation.
And COVID-related lockdownS in China are likely to exacerbate supply chain disruptions.
FOMC participationS have revised up their projectionS FOR inflation this year, particularly for total PCE inflation given developments in food and energy prices.
The median projection is 5.2 percent this year and fallS to 2.6 percent next year and 2.2 percent IN 2024.
ParticiPANTS continue to see riskS to inflation as weighted to the upside.
The Fed's monetary policy actions are guided by our mandate to promote maximum employmenT and stable priceS for American people.
My colleagueS and I ARE actualy aware that high inflation imposes significant hardship, especially ON those least able to meet the higher costS of essentialS like food, housing, and transportation.
We are highly attentive to the riskS high inflation poseS to both sides of our mandate, and we are strongly commmited to returning inflation to our 2 percent objective.
Against THE backdrop of rapidly envolving economic enviroment, our policy HAS BEEN adapting, and it will continue to do so.
At today's meeting, the Committee raised THE target range FOR the Fedral FundS rate by percentage point, resulting in A 1 and half percentage point increase in the target range so far this year.
The Committee reiterated that it anticipateS that ongoing increases in the target range will be appropriate.
And we are continuing the process of significantly reducing the size of our balance sheet which playS an important role in firming the stance of monetary policy.
Coming our of or last meeting in May, there was A broad sense ON the Committee that a half percentage point increasE in the target range should be considered at this meething if econoic and financial conditions evolved in line with expectations.
We also stated that we WERE highly attentive to inflation risks and that we WOULD BE nimble in responding TO incoing data and the evolving outlook.
Since then, inflation HAS agein SURPRICES to THE upsidE, some indicators of inflation expectations HAVE RISEN, and projectionS FOR inflation this year HAVE BEEN reviced up notably.
to be continued... （続く）