Part 2: Monetary Policy
Monetary Policy Report submitted to the Congress on June 12, 2020, pursuant to section 2B of the Federal Reserve Act
The Federal Open Market Committee quickly reduced the federal funds rate to the effective lower bound...
In light of the effects of COVID-19 on the economy and on risks to the outlook, the Federal Open Market Committee (FOMC) lowered the target range for the federal funds rate by a total of 1-1/2 percentage points—from a range of 1-1/2 to 1-3/4 percent to one of 0 to 1/4 percent—over two meetings in early and mid-March (figure 46).21 Specifically, in early March, the Committee lowered the target range for the federal funds rate 1/2 percentage point, to 1 to 1-1/4 percent. In mid-March, the Committee further lowered the target range 1 percentage point, to 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum-employment and price- stability goals. In connection with the changes in the target range, the Federal Reserve reduced the interest paid on reserve balances and decreased the interest rate offered on overnight reverse repurchase agreements at the two March meetings.
. . . and the FOMC increased the holdings of Treasury securities and agency mortgage-backed securities in the System Open Market Account
At its mid-March meeting, along with its decision to lower the target range for the federal funds rate, the FOMC emphasized that it is prepared to use its full range of tools to support the flow of credit to households and businesses, thereby promoting its maximum-employment and price-stability goals. To support the smooth functioning of markets for Treasury securities and agency mortgage-backed securities (MBS)—markets central to the flow of credit to households and businesses—the Committee announced that it would increase its holdings of Treasury securities by at least $500 billion and its holdings of agency MBS by at least $200 billion over coming months (figure 47). (See the box "Federal Reserve Actions to Ensure Smooth Functioning of Treasury and MBS Markets.") Later in March, the Committee announced that it would continue to purchase Treasury securities and agency MBS in the amounts needed to support smooth market functioning and the effective transmission of monetary policy to broader financial conditions (figure 48). The Committee also included agency commercial MBS in its purchases for the first time. In June, the Committee announced that, over coming months, the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial MBS at least at the current pace to sustain smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions.
The Federal Reserve has continued rolling over at auction all principal payments from its holdings of Treasury securities. Before mid-March, to allow for a gradual runoff of agency securities, the Federal Reserve reinvested principal payments from agency debt and agency MBS of up to $20 billion per month in Treasury securities; agency MBS principal payments in excess of $20 billion each month were reinvested in agency MBS. Beginning in mid-March, the Committee announced it would reinvest all principal payments from the Federal Reserve's holdings of agency debt and agency MBS back into agency MBS. (The box "Developments on the Federal Reserve's Balance Sheet" discusses changes in the size and composition of the Federal Reserve's balance sheet over the past year.)
Federal Reserve Actions to Ensure Smooth Functioning of Treasury and MBS Markets
Deterioration in Market Functioning in February and March
Between late February and early March, functioning in U.S. Treasury securities and agency mortgage-backed securities (MBS) markets became increasingly strained. Amid growing concerns about the economic implications of COVID-19, investors sought to sell large volumes of long-maturity Treasury securities and MBS and reallocate their portfolios into shorter-term, more liquid assets. While the yields on long-maturity Treasury securities initially dropped sharply, in mid-March they started to increase in the face of these strong selling pressures (figure A). Around the same time as the increase in long-maturity Treasury yields, the spreads between yields on MBS and Treasury securities of comparable duration widened sharply. Indications of severe dislocations in both markets were also present. For example, bid-ask spreads for Treasury securities and agency MBS widened significantly (figure B shows indicative Treasury bid-ask spreads).
One factor that may explain these market dislocations is the effect of widespread selling of Treasury securities and MBS to primary dealers, who intermediate a large proportion of trading in these markets. As a wide range of domestic and foreign investors (including foreign official investors) rushed to raise cash or rebalance their portfolios by selling assets, dealers took large amounts of less liquid securities, including off-the-run Treasury securities and agency MBS, onto their balance sheets. At the same time, mortgage refinancing picked up, prompting substantial turnover in the MBS market. By early March, some dealers had reportedly run into balance sheet constraints that hampered their ability to purchase additional securities, leading to a deterioration in the functioning of a number of dealer-intermediated markets.
In the market for Treasury securities, liquidity conditions were particularly poor for more seasoned, or "off the run," securities. However, the most liquid parts of the market, where newly issued, or "on the run," securities are traded electronically, saw unprecedented strains: The volume of posted quotes, or "market depth," dropped sharply, while intraday bid-ask spreads were exceptionally volatile, particularly for the longest-maturity securities. These strains in the most liquid part of the market suggest that principal trading firms—market participants who specialize in high-frequency and automated intermediation—were significantly less active than usual.
Federal Reserve Policy Actions
The disruptions to the functioning of the Treasury and MBS markets were notable in view of the status of these markets as cornerstones for the operation of the U.S. and global financial systems and for the transmission of monetary policy. The Federal Reserve therefore took a series of policy measures designed to ensure the smooth functioning of these markets. These measures included the expansion of repurchase operations, an increase in purchases of Treasury and agency MBS securities, the expansion of financing arrangements for primary dealers, and a temporary change to the regulatory capital requirements of bank holding companies and depository institutions.
Beginning March 9, 2020, following a directive from the Federal Open Market Committee (FOMC), the Federal Reserve Bank of New York's Open Market Desk increased the size of overnight and term repurchase operations in order to ensure that the supply of reserves remained ample and to support the smooth functioning of the markets in which primary dealers obtain a substantial proportion of their short-term funding.1 These changes expanded the supply of short-term funding available to primary dealers to finance their increased holdings of Treasury securities and agency MBS at a time when funding costs from other sources were increasing. Further, on March 12, the Desk introduced new weekly recurring one- and three-month term repurchase agreement (repo) operations of up to $500 billion to address the disruption in Treasury financing markets.2 Finally, on March 16, the Desk introduced a second daily overnight repo operation and increased the amount offered in each to $500 billion.3 Usage of Federal Reserve repo operations peaked on March 17, with overnight and term repo outstanding of $496 billion, and has since fallen to $167 billion as funding strains have eased. In light of more stable repo market conditions, on May 4, the Desk returned to once daily overnight repo operations.4 Further, on May 14, the Desk discontinued its three-month term repo operations.5
Despite the much larger volume of repo operations during the week of March 9, strains in Treasury and agency MBS markets continued to build. Beginning in mid-March, therefore, the FOMC directed the Desk to purchase Treasury securities and agency MBS in order to support smooth market functioning. On March 15, the FOMC directed the Desk to increase its holdings of Treasury securities by at least $500 billion and of agency MBS by at least $200 billion, with purchases to take place across maturities.6 To provide greater flexibility in addressing the strains, on March 23, the FOMC authorized purchases of these securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions. The securities targeted for purchase were also expanded to include agency commercial MBS. Since mid-March, the Desk has purchased approximately $1.6 trillion and $719 billion of Treasury securities and agency MBS, respectively.7 The daily amounts of purchases peaked at approximately $75 billion and $41 billion for Treasury securities and agency MBS, respectively, in late March before being reduced in stages to the current average daily amounts of around $4.0 billion for Treasury securities and $4.5 billion for agency MBS (including reinvestments). These purchases helped reduce financial market volatility by providing a predictable source of demand for these securities and by taking up some of the inventories from dealers' balance sheets.
On March 17, the Board, with the approval of the U.S. Treasury Secretary, established the Primary Dealer Credit Facility (PDCF) to provide primary dealers with access to term funding against a broad range of collateral.8 The PDCF helped alleviate funding pressures faced by primary dealers by allowing them to source financing more easily for their increased securities holdings. The amount of PDCF loans outstanding peaked at around $35 billion in mid-April but has since declined to around $6 billion.
On March 31, the Federal Reserve announced the establishment of the temporary FIMA (Foreign and International Monetary Authorities) Repo Facility to allow FIMA account holders, which consist of central banks and other international monetary authorities with accounts at the Federal Reserve Bank of New York, to exchange their Treasury securities for U.S. dollars.9 This facility allows foreign official institutions to raise U.S. dollars, if needed, without having to sell Treasury securities in the open market during periods of heightened volatility or impaired market functioning. Since its inception, take-up of the facility has been modest, as stresses in the U.S. Treasury market have declined.
On April 1, the Federal Reserve released an interim final rule indicating that holdings of U.S. Treasury securities and deposits at Federal Reserve Banks by bank holding companies would be excluded from the calculation of the supplementary leverage ratio (SLR) until March 31, 2021.10 Further, on May 15, 2020, the federal bank regulatory agencies (the Board of Governors, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency) released an interim final rule allowing depository institutions that are subject to the SLR the option to similarly exclude U.S. Treasury securities and deposits at Federal Reserve Banks from their SLR calculations through March 31, 2021.11 These temporary exemptions are expected to ease liquidity pressures for primary dealers and depository institutions subject to these leverage ratios by providing them with greater flexibility to intermediate trades with clients in the presence of temporarily larger inventories of Treasury securities.
Improvements in Market Functioning
Since the announcement of these policy actions, trading conditions in the markets for Treasury securities and MBS have improved steadily. The purchases of Treasury securities and agency MBS contributed to the subsequent decline in primary dealers' inventories (figure C). Bid-ask spreads have narrowed, particularly in the case of on-the-run Treasury securities, while MBS spreads have also come down from their peaks in mid-March. In addition to the Federal Reserve's actions, the passage of the CARES Act (Coronavirus Aid, Relief, and Economic Security Act), together with an improvement in sentiment among investors regarding the economic implications of COVID-19, likely contributed to the improvement in market functioning. In late May, these inventories temporarily increased to levels previously seen in March, largely because of increased dealer holdings of Treasury bills. However, Treasury markets did not exhibit a recurrence of the notable strains in trading conditions witnessed earlier this year.
Although trading conditions have improved substantially since mid-March, bid-ask spreads for longer-maturity and off-the-run Treasury securities remain wider than in mid-February. Market depth for on-the-run securities remains low, particularly for longer-maturity securities. MBS market functioning and liquidity have largely returned to pre-February norms, though strains remain in some less liquid parts of the market.
1. See Federal Reserve Bank of New York (2020), "Statement Regarding Repurchase Operations," March 9, https://www.newyorkfed.org/markets/opolicy/operating_policy_200309. Return to text
2. See Federal Reserve Bank of New York (2020), "Statement Regarding Treasury Reserve Management Purchases and Repurchase Operations," March 12, https://www.newyorkfed.org/markets/opolicy/operating_policy_200312a. Return to text
3. See Federal Reserve Bank of New York (2020), "Statement Regarding Repurchase Operations," March 16, https://www.newyorkfed.org/markets/opolicy/operating_policy_200316. Return to text
4. See Federal Reserve Bank of New York (2020), "Statement Regarding Repurchase Operations," April 13, https://www.newyorkfed.org/markets/opolicy/operating_policy_200413. Return to text
5. See Federal Reserve Bank of New York (2020), "Statement Regarding Repurchase Operations," May 13, https://www.newyorkfed.org/markets/opolicy/operating_policy_200513. Return to text
6. See the FOMC statement issued after the March 15 meeting, which is available (along with other postmeeting statements) on the Monetary Policy portion of the Board's website at https://www.federalreserve.gov/monetarypolicy.htm. Return to text
7. The MBS purchase amount includes purchases that have yet to settle. Return to text
8. See Board of Governors of the Federal Reserve System (2020), "Federal Reserve Board Announces Establishment of a Primary Dealer Credit Facility (PDCF) to Support the Credit Needs of Households and Businesses," press release, March 17, https://www.federalreserve.gov/newsevents/pressreleases/monetary20200317b.htm. Return to text
9. See Board of Governors of the Federal Reserve System (2020), "Federal Reserve Announces Establishment of a Temporary FIMA Repo Facility to Help Support the Smooth Functioning of Financial Markets," press release, March 31, https://www.federalreserve.gov/newsevents/pressreleases/monetary20200331a.htm. Return to text
10. See Board of Governors of the Federal Reserve System (2020), "Federal Reserve Board Announces Temporary Change to Its Supplementary Leverage Ratio Rule to Ease Strains in the Treasury Market Resulting from the Coronavirus and Increase Banking Organizations' Ability to Provide Credit to Households and Businesses," press release, April 1, https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200401a.htm. Return to text
11. See Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency (2020), "Regulators Temporarily Change the Supplementary Leverage Ratio to Increase Banking Organizations' Ability to Support Credit to Households and Businesses in Light of the Coronavirus Response," joint press release, March 15, https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200515a.htm. Return to textReturn to text
Developments on the Federal Reserve's Balance Sheet
The Size of the Federal Reserve's Balance Sheet Has Increased Considerably
In response to the financial and economic disruptions caused by the COVID-19 pandemic, the Federal Reserve has eased the stance of monetary policy and has deployed various tools to promote smooth functioning of financial markets and the flow of credit to households and businesses. This discussion reviews the implications of these actions for the Federal Reserve's balance sheet.
To support the smooth functioning of those credit markets that are critical for the economy, the Federal Reserve purchased Treasury securities and agency residential and commercial mortgage-backed securities (MBS), expanded repurchase agreement (repo) operations, and introduced several credit and liquidity facilities. As a result of these actions, the size of the Federal Reserve's balance sheet increased from $4.2 trillion at the beginning of 2020, approximately 19 percent of U.S. nominal gross domestic product (GDP), to $7.2 trillion in June 2020, approximately 33 percent of U.S. nominal GDP.1 The $3 trillion increase in the size of the balance sheet was driven by asset purchases and other extraordinary actions (figure A).2
A. Balance sheet comparison
(Billions of dollars)
|Agency debt and MBS *||1,838||1,411||427|
|Net unamortized premiums||300||111||188|
|Central bank liquidity swaps||447||4||443|
|Liabilities and capital|
|Federal Reserve notes||1,904||1,759||144|
|Reserves held by depository institutions||3,257||1,549||1,709|
|U.S. Treasury General Account||1,431||404||1,028|
|Other liabilities and capital||401||382||19|
|Total liabilities and capital||7,165||4,174||2,992|
* Includes only settled holdings in par values; the purchases of agency mortgage-backed securities (MBS) not yet settled was approximately $130 billion on June 3, 2020.
Source: Federal Reserve Board, Statistical Release H.4.1, "Factors Affecting Reserve Balances."
Open Market Operations, the Discount Window, and U.S. Dollar Liquidity Swap Lines
Since the beginning of 2020, System Open Market Account holdings of Treasury securities and agency MBS increased by $1,805 billion and $427 billion, respectively.3 The markets for both Treasury securities and agency MBS play a critical role in the U.S. economy, and the Federal Reserve's purchases have fostered a substantial improvement in the functioning of these markets and the conditions prevailing in them.4
Furthermore, to address strains in short-term U.S. dollar funding markets, the Federal Reserve Bank of New York's Open Market Desk expanded its offerings of overnight and term repo operations. The amount of repos outstanding reached a peak of $442 billion in mid-March. Subsequently, given the improvement in funding market conditions, the Desk announced several reductions in the frequency of repo operations. As of June 3, all repos outstanding had declined to $212 billion, lower than the amount outstanding early in the year, amid substantial increases in reserves and improved funding market conditions.
On March 15, the Federal Reserve announced changes to the discount window and encouraged depository institutions to use the discount window to meet unexpected funding needs and support the flow of credit to households and businesses.5 The changes include lowering the primary credit rate by 150 basis points to 0.25 percent and extending borrowing terms for up to 90 days. The total outstanding discount window primary credit borrowing peaked at around $51 billion in late March and has since declined to $11 billion in June. Furthermore, the Federal Reserve maintains standing dollar liquidity swap line agreements with the central banks of several countries and instituted temporary agreements with the central banks of additional countries. After initially ramping up to $439 billion in March and April, the total agreements outstanding stayed mostly flat in May to reach $447 billion as of June 3 (figure B).
Lending Programs and Liquidity Facilities under Section 13(3) of the Federal Reserve Act
In addition to the open market operations and initiatives described earlier, the Federal Reserve further expanded measures to enhance liquidity and the flow of credit to U.S. households and businesses. Under the authority of section 13(3) of the Federal Reserve Act, with the approval of the Secretary of the Treasury, the Federal Reserve Board implemented various measures in response to intensified stresses in several markets.6 The combined size of the Money Market Mutual Fund Liquidity Facility and the Primary Dealer Credit Facility increased to $86 billion in April, but the size of the facilities declined to $36 billion by June 3. The combined size of other facilities, such as the Paycheck Protection Program Lending Facility, the Commercial Paper Funding Facility, the Secondary Market Corporate Credit Facility, and the Municipal Liquidity Facility, has been steadily rising and reached $65 billion as of June 3 (figure C).7
C. Liquidity and credit market facilities
|Name||Target||Maximum size||Utilization as of 6/3/2020|
|Primary Dealer Credit Facility||Broker-dealer liquidity||Unlimited||$6 billion|
|Money Market Mutual Fund Liquidity Facility||MMF liquidity||Unlimited||$30 billion|
|Paycheck Protection Program Lending Facility||Funding of PPP loans||Unlimited||$55 billion|
|Commercial Paper Funding Facility*||Newly issued CP||Issuer max outstanding limit||$4 billion|
|Primary Market Corporate Credit Facility||Newly issued corporate debt||Combined $750 billion||$0 billion|
|Secondary Market Corporate Credit Facility*||Secondary market corporate debt||$4 billion|
|Main Street New Loan Facility||Small and medium-sized businesses||Combined $600 billion||$0 billion|
|Main Street Expanded Loan Facility|
|Main Street Priority Loan Facility|
|Municipal Liquidity Facility*||States and municipal governments||$500 billion||$1 billion|
|Term Asset-Backed Securities Loan Facility||Newly issued ABS||$100 billion||$0 billion|
Note: CP is commercial paper, MMF is money market fund, ABS is asset-backed securities, and PPP is Paycheck Protection Program.
* Excludes assets purchased pursuant to terms of the credit facility and amounts related to Treasury contributions to the facility.
Source: Federal Reserve Board, Statistical Release H.4.1, "Factors Affecting Reserve Balances."
The Expansion of Total Assets Led to Higher Reserve Balances Held by Depository Institutions
The increase in the Federal Reserve's assets led to a commensurate increase in the size of liabilities on the Federal Reserve's balance sheet. The expansion of total assets from the outright purchases and other actions resulted in reserve balances of $3.3 trillion, an increase of $1.7 trillion from the beginning of the year. Additionally, several nonreserve liabilities increased. In March and April, Federal Reserve notes grew faster than normal, partially in response to the COVID-19 pandemic, and reached $1.9 trillion, an increase of $144 billion from the beginning of the year.
Furthermore, the U.S. Treasury's General Account (TGA) at the Federal Reserve, which the Treasury uses to receive taxes and proceeds of Treasury auctions and to process the government's outlays, increased substantially. At the beginning of 2020, the TGA balance was approximately $400 billion. In preparation for the fiscal spending related to the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) and other stimulus measures, the TGA balance reached a high of $1.4 trillion on June 3 (figure D).8
1. Data based on the "second" estimate of first-quarter 2020 current-dollar GDP of $21.5 trillion released by the Bureau of Economic Analysis; see Bureau of Economic Analysis (2020), "Gross Domestic Product, 1st Quarter 2020 (Second Estimate); Corporate Profits, 1st Quarter 2020 (Preliminary Estimate)," press release, May 28, https://www.bea.gov/news/2020/gross-domestic-product-1st-quarter-2020-second-estimate-corporate-profits-1st-quarter. Return to text
2. In September 2019, the Federal Reserve started purchasing Treasury bills and conducting term and overnight repo operations to ensure the supply of reserves would remain ample and help forestall the possibility of money market pressures that could adversely affect policy implementation. In January and February 2020, the Open Market Desk primarily purchased Treasury bills to provide liquidity and supply of reserves. Beginning in mid-March, the Desk started purchasing Treasury securities across a range of maturities and agency MBS in order to support smooth market functioning. For more information, see the box "Federal Reserve Actions to Ensure Smooth Functioning of Treasury and MBS Markets." Return to text
3. The increase in MBS holdings on the balance sheet is less than the total MBS purchase amounts because the purchases include reinvestments of principal received and some of the purchases have not settled yet. Return to text
4. The daily purchase amounts peaked at approximately $75 billion and $41 billion for Treasury securities and agency MBS, respectively, in late March. Subsequently, given the improvements in market functioning and liquidity conditions, the pace of purchases was significantly reduced to the average daily amounts of $4.0 billion for Treasury securities and $4.5 billion for agency MBS in June. For more information, see the box "Federal Reserve Actions to Ensure Smooth Functioning of Treasury and MBS Markets." Return to text
5. A list of regulatory and supervisory actions by the Federal Reserve related to COVID-19 is available on the Board's website at https://www.federalreserve.gov/supervisory-regulatory-action-response-covid-19.htm. Return to text
7. Figures exclude the 85 percent of the Treasury's equity contributions invested in nonmarketable Treasury securities for the net portfolio holdings of Commercial Paper Funding Facility II LLC, Corporate Credit Facilities LLC, and Municipal Liquidity Facility LLC.
Note that all of these programs require approval from the Secretary of the Treasury and are subject to high standards for transparency, including CARES Act (Coronavirus Aid, Relief, and Economic Security Act) reporting for some facilities. For more information, see Board of Governors of the Federal Reserve System (2020), Financial Stability Report (Washington: Board of Governors, May), pp. 9–18, https://www.federalreserve.gov/publications/files/financial-stability-report-20200515.pdf. Return to text
8. By statute, the Federal Reserve serves a special role as fiscal agent or banker for the federal government. Return to textReturn to text
The Federal Reserve eased lending terms for primary credit borrowing...
Primary credit is the Federal Reserve lending program available to depository institutions in generally sound financial condition. Amid increasing stress in funding markets in mid-March, the Federal Reserve announced several changes to the primary credit program. Importantly, the primary credit rate was set at the top of the target range for the federal funds rate rather than 50 basis points above the top of the range. The term of primary credit loans, which had previously been mainly overnight advances, was extended to allow depository institutions to borrow for up to 90 days. Federal Reserve communication encouraged the use of the discount window to help meet the demand for credit from households and businesses.
Discount window borrowing under the primary credit program increased significantly following these developments. Primary credit outstanding reached a peak of around $50 billion in late March 2020—its highest level since the financial crisis and well above the typical level of around $10 million that prevailed in 2019. Use of primary credit was fairly widespread, with discount window loans being extended to institutions across a range of size categories. Overall, the outstanding amount of primary credit loans declined to about $10 billion by early June.
. . . and undertook actions with other central banks to support U.S. dollar funding markets
The Federal Reserve announced coordinated actions with other central banks to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements and the establishment of temporary U.S. dollar liquidity arrangements (swap lines) with nine additional central banks. (See the box "Developments Related to Financial Stability" in Part 1 for a more detailed discussion of the swap lines.) The size of the swap lines increased from close to zero in mid-March to almost $450 billion by the end of April. The Federal Reserve also established a temporary repo facility for foreign and international monetary authorities.
The FOMC is committed to using its tools to promote maximum employment and price stability
The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term and pose considerable risks to the economic outlook over the medium term. The FOMC is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum-employment and price-stability goals. The Committee will continue to monitor the implications of incoming information for the economic outlook, including information related to public health, as well as global developments and muted inflation pressures, and it will use its tools and act as appropriate to support the economy.
The Federal Reserve has continued to review its strategic framework for monetary policy
In 2019, the Federal Reserve began a broad review of the monetary policy strategy, tools, and communication practices it uses to pursue its statutory dual-mandate goals of maximum employment and price stability. A key component of the review was a series of public Fed Listens events. The Federal Reserve held 14 events around the country in 2019 to consult with a range of organizations on the effects that labor market conditions, inflation, and interest rates have on them and their communities. In light of the rapidly changing public health and economic environments due to COVID-19, the Federal Reserve convened another event in May 2020 to get an update. The Federal Reserve has released a report on its Fed Listens initiative.22 The lessons learned from the Fed Listens initiative were never more important than they are today as Americans navigate through these challenging times. The Federal Reserve expects to complete the review of its monetary policy strategy, tools, and communication practices later this year. The Federal Reserve remains focused on the attainment of its goals of maximum employment and price stability, including laying the foundation for the return to a strong labor market.
21. See the FOMC statements issued after the March meetings, which are available (along with other postmeeting statements) on the Monetary Policy portion of the Board's website at https://www.federalreserve.gov/monetarypolicy.htm. Return to text
22. The report is available on the Board's website at https://www.federalreserve.gov/publications/files/fedlistens-report-20200612.pdf. Return to text