FOMC meeting report 3 - prices Along with the expansion of...

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FOMC meeting April 29-30 After the harsh conditions at the last meeting in the month of March, this April meeting shows that economic activity has picked up, which is exactly what they wanted. There have been some similar signs from last month of economic activity that show both positivity and negativity. There was labor market improvement, although the indicators were mixed. Fiscal policy is still restraining economic growth, but as before continues to diminish this restraint. The long term inflation rate is still expected to remain stable, but continues to be below the committee’s objecti ve of 2%. The unemployment rate is still too high, household spending is thought to be rising faster than before, and the housing sector continues to recover slowly. The committee decided that it wants to continue to find ways to expand economic activity, and can do so through things like maximizing employment and finding ways to stabilize
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Unformatted text preview: prices. Along with the expansion of economic activity, the committee also believes that labor market conditions will continually improve towards their expectations. They will continue to monitor the low inflation seeing as this could pose risks to the economy, and hope that it will bump up towards their goal and a safe percentage. Even if the committee gets this inflation rate where it is supposed to be, along with getting an employment rate to a place that will not pose any threats to the economy, they still fear that the target federal funds rate will be below what is considered normal. But they have to keep advancing, and try to improve the economy and make it the best that it can be. Source: ...
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