Federal Reserve issues FOMC statement

In conjunction with the Federal Open Market Committee (FOMC) meeting held on September 20–21, 2022, meeting participants submitted their projections of the most likely outcomes for real gross domestic product (GDP) growth, the unemployment rate, and inflation for each year from 2022 to 2025 and over the longer run. Each participant’s projections were based on information available at the time of the meeting, together with her or his assessment of appropriate monetary policy—including a path for the federal funds rate and its longer-run value—and assumptions about other factors likely to affect economic outcomes. The longer-run projections represent each participant’s assessment of the value to which each variable would be expected to converge, over time, under appropriate monetary policy and in the absence of further shocks to the economy. “Appropriate monetary policy” is defined as the future path of policy that each participant deems most likely to foster outcomes for economic activity and inflation that best satisfy his or her individual interpretation of the statutory mandate to promote maximum employment and price stability. tweet at 2:00pm: Fed Officials See Fed Funds Rate at a Median of 4.4% at End of 2022 tweet at 2:00pm: [DB] FED MEDIAN FORECAST SHOWS RATES AT 4.6% IN 2023, 3.9% IN 2024 tweet at 2:00pm: *#FED RAISES BENCHMARK RATE BY 75 BPS TO 3%-3.25% RANGE - BBG *FED MEDIAN FORECAST SHOWS 2.9% RATES AT END '25, LONG RUN 2.5% *FED DOT PLOT SHOWS SPLIT OVER AMOUNT OF TIGHTENING IN '22, '23 tweet at 2:01pm: ONE FED OFFICIAL SEES U.S. GDP CONTRACTING IN 2023 SUMMARY OF ECONOMIC PROJECTIONS IMPLIES AT LEAST ONE MORE 75-BASIS-POINT RATE HIKE IN 2022, NO RATE CUTS UNTIL 2024 FED SAYS IT IS HIGHLY ATTENTIVE TO INFLATION RISKS, STRONGLY COMMITTED TO RETURNING INFLATION TO 2%

tweet at 2:30pm: FED'S POWELL: STRONGLY COMMITTED TO BRINGING INFLATION DOWN tweet at 2:30pm: FED'S POWELL: WE HAVE RESOLVE FED'S POWELL: PRICE STABILITY IS OUR BEDROCK tweet at 2:32pm: Fed's Chairman Powell: -We anticipate that ongoing increases will be appropriate - We continue the process of reducing the Balance Sheet - Economy has slowed. Modest growth in spending and production tweet at 2:32pm: *Fed's Powell: Moving Policy To Level That Is Sufficiently Restrictive *Fed's Powell: Fed Seeks Return To 'Sufficiently Restrictive' Rates FED'S POWELL: HOUSING SECTOR HAS WEAKENED SIGNIFICANTLY FED'S POWELL: WEAKER ECONOMIC GROWTH ABROAD RESTRAINING EXPORTS tweet at 2:32pm: FED'S POWELL: LABOR MARKET HAS REMAINED EXTREMELY TIGHT