FOMC Statements (March 2008 to June 2012)

Release Date: April 25June 20, 2012

For immediate release

Information received since the Federal Open Market Committee met in MarchApril suggests that
the economy has been expanding moderately. Labor market conditions have improved this year.
However, growth in employment has slowed in recent months;, and the unemployment rate has
declined but remains elevated. Household spending and businessBusiness fixed investment
havehas continued to advance. Household spending appears to be rising at a somewhat slower
pace than earlier in the year. Despite some signs of improvement, the housing sector remains
depressed. Inflation has picked up somewhatdeclined, mainly reflecting higherlower prices of
crude oil and gasoline. However,, and longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and
price stability. The Committee expects economic growth to remain moderate over coming
quarters and then to pick up very gradually. Consequently, the Committee anticipates that the
unemployment rate will decline graduallyonly slowly toward levels that it judges to be consistent
with its dual mandate. StrainsFurthermore, strains in global financial markets continue to pose
significant downside risks to the economic outlook. The increase in oil and gasoline prices earlier
this year is expected to affect inflation only temporarily, and the Committee anticipates that
subsequently inflation over the medium term will run at or below the rate that it judges most
consistent with its dual mandate.

To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate
most consistent with its dual mandate, the Committee expects to maintain a highly
accommodative stance for monetary policy. In particular, the Committee decided today to keep
the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that
economic conditions--including low rates of resource utilization and a subdued outlook for
inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds
rate at least through late 2014.

The Committee also decided to continue through the end of the year its program to extend the
average maturity of its holdings of securities as announced in September.. Specifically, the
Committee intends to purchase Treasury securities with remaining maturities of 6 years to 30
years at the current pace and to sell or redeem an equal amount of Treasury securities with
remaining maturities of approximately 3 years or less. This continuation of the maturity extension
program should put downward pressure on longer-term interest rates and help to make broader
financial conditions more accommodative. The Committee is maintaining its existing policiespolicy
of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed
securities in agency mortgage-backed securities and of rolling over maturing Treasury securities
at auction.. The Committee will regularly review the size and composition of its securities holdings
and is prepared to adjust those holdingstake further action as appropriate to promote a stronger
economic recovery and sustained improvement in labor market conditions in a context of price
stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C.
Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Jerome H.
Powell; Sarah Bloom Raskin; Jeremy C. Stein; Daniel K. Tarullo; John C. Williams; and Janet L.
Yellen. Voting against the action was Jeffrey M. Lacker, who does not anticipate that economic
conditions are likely to warrant exceptionally low levels of the federal funds rate through late
2014opposed continuation of the maturity extension program.

Release Date: March 13April 25, 2012


Information received since the Federal Open Market Committee met in JanuaryMarch suggests
that the economy has been expanding moderately. Labor market conditions have improved
furtherin recent months; the unemployment rate has declined notably in recent months but
remains elevated. Household spending and business fixed investment have continued to
advance. TheDespite some signs of improvement, the housing sector remains depressed.
Inflation has been subdued in recent months, althoughpicked up somewhat, mainly reflecting
higher prices of crude oil and gasoline have increased lately. Longer. However, longer-term
inflation expectations have remained stable.

price stability. The Committee expects moderate economic growth to remain moderate over
coming quarters and consequently then to pick up gradually. Consequently, the Committee
anticipates that the unemployment rate will decline gradually toward levels that the Committee it
judges to be consistent with its dual mandate. Strains in global financial markets have eased,
though they continue to pose significant downside risks to the economic outlook. The recent
increase in oil and gasoline prices will push up earlier this year is expected to affect inflation only
temporarily, butand the Committee anticipates that subsequently inflation will run at or below the
rate that it judges most consistent with its dual mandate.

To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate
most consistent with its dual mandate, the Committee expects to maintain a highly

The Committee also decided to continue its program to extend the average maturity of its
holdings of securities as announced in September. The Committee is maintaining its existing
policies of reinvesting principal payments from its holdings of agency debt and agency mortgage-
backed securities in agency mortgage-backed securities and of rolling over maturing Treasury
securities at auction. The Committee will regularly review the size and composition of its
securities holdings and is prepared to adjust those holdings as appropriate to promote a stronger
economic recovery in a context of price stability.

Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Sarah Bloom
Raskin; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was
Jeffrey M. Lacker, who does not anticipate that economic conditions are likely to warrant
exceptionally low levels of the federal funds rate through late 2014.

Release Date: January 25March 13, 2012


Information received since the Federal Open Market Committee met in DecemberJanuary
suggests that the economy has been expanding moderately, notwithstanding some slowing in
global growth. While indicators point to some further improvement in overall labor. Labor market
conditions, have improved further; the unemployment rate has declined notably in recent months
but remains elevated. Household spending has continued to advance, but growth in and business
fixed investment has slowed, and thehave continued to advance. The housing sector remains
depressed. Inflation has been subdued in recent months, although prices of crude oil and
longergasoline have increased lately. Longer-term inflation expectations have remained stable.

price stability. The Committee expects moderate economic growth over coming quarters to be
modest and consequently anticipates that the unemployment rate will decline only gradually
toward levels that the Committee judges to be consistent with its dual mandate. Strains in global
financial markets have eased, though they continue to pose significant downside risks to the
economic outlook. The The recent increase in oil and gasoline prices will push up inflation
temporarily, but the Committee also anticipates that over coming quarters,subsequently inflation
will run at levels at or below thosethe rate that it judges most consistent with the Committee'sits
dual mandate.

To support a stronger economic recovery and to help ensure that inflation, over time, is at
levelsthe rate most consistent with theits dual mandate, the Committee expects to maintain a
highly accommodative stance for monetary policy. In particular, the Committee decided today to
keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that


Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Sarah Bloom
Raskin; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was
Jeffrey M. Lacker, who preferred to omit the description of the time period over whichdoes not
anticipate that economic conditions are likely to warrant exceptionally low levels of the federal
funds rate through late 2014.

Release Date: December 13, 2011January 25, 2012


Information received since the Federal Open Market Committee met in NovemberDecember
suggests that the economy has been expanding moderately, notwithstanding some apparent
slowing in global growth. While indicators point to some further improvement in overall labor
market conditions, the unemployment rate remains elevated. Household spending has continued
to advance, but growth in business fixed investment appears to be increasing less rapidlyhas
slowed, and the housing sector remains depressed. Inflation has moderated since earlier in the
yearbeen subdued in recent months, and longer-term inflation expectations have remained
stable.

price stability. The Committee continues to expect a moderate pace ofexpects economic growth
over coming quarters to be modest and consequently anticipates that the unemployment rate will
decline only gradually toward levels that the Committee judges to be consistent with its dual
mandate. Strains in global financial markets continue to pose significant downside risks to the
economic outlook. The Committee also anticipates that inflation will settle, over coming quarters,
inflation will run at levels at or below those consistent with the Committee’sCommittee's dual
mandate. However, the Committee will continue to pay close attention to the evolution of inflation
and inflation expectations.

To support a stronger economic recovery and to help ensure that inflation, over time, is at levels
consistent with the dual mandate, the Committee decided todayexpects to maintain a highly


The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent
and currently anticipates that economic conditions--including low rates of resource utilization and
a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels
for the federal funds rate at least through mid-2013.

The Committee will continue to assess the economic outlook in light of incoming information and
is prepared to employ its tools to promote a stronger economic recovery in a context of price
stability.

Dudley, Vice Chairman; Elizabeth A. Duke; Richard W. Fisher; Narayana Kocherlakota; Charles I.
PlosserDennis P. Lockhart; Sandra Pianalto; Sarah Bloom Raskin; Daniel K. Tarullo; John C.
Williams; and Janet L. Yellen. Voting against the action was Charles L. EvansJeffrey M. Lacker,
who supported additional policy accommodation at thispreferred to omit the description of the

time period over which economic conditions are likely to warrant exceptionally low levels of the
federal funds rate.

Release Date: November 2December 13, 2011


Information received since the Federal Open Market Committee met in September
indicatesNovember suggests that economic growth strengthened somewhat in the third quarter,
reflecting in part a reversal of the temporary factors that had weighed on growth earlier in the
year. Nonetheless, recenteconomy has been expanding moderately, notwithstanding some
apparent slowing in global growth. While indicators point to continuing weaknesssome
improvement in overall labor market conditions, and the unemployment rate remains elevated.
Household spending has increased at a somewhat faster pace in recent months. Business
investment in equipment and software has continued to expandadvance, but business fixed
investment in nonresidential structures is still weak,appears to be increasing less rapidly and the
housing sector remains depressed. Inflation appears to havehas moderated since earlier in the
year as prices of energy and some commodities have declined from their peaks. Longer, and
longer-term inflation expectations have remained stable.

price stability. The Committee continues to expect a moderate pace of economic growth over
coming quarters and consequently anticipates that the unemployment rate will decline only
gradually toward levels that the Committee judges to be consistent with its dual mandate.
Moreover, there areStrains in global financial markets continue to pose significant downside risks
to the economic outlook, including strains in global financial markets. The Committee also
anticipates that inflation will settle, over coming quarters, at levels at or below those consistent
with the Committee's dual mandate as the effects of past energy and other commodity price
increases dissipate further.Committee’s dual mandate. However, the Committee will continue to
pay close attention to the evolution of inflation and inflation expectations.

consistent with the dual mandate, the Committee decided today to continue its program to extend
the average maturity of its holdings of securities as announced in September. The Committee is
maintaining its existing policies of reinvesting principal payments from its holdings of agency debt
and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over
maturing Treasury securities at auction. The Committee will regularly review the size and
composition of its securities holdings and is prepared to adjust those holdings as appropriate.


The Committee will continue to assess the economic outlook in light of incoming information and
is prepared to employ its tools to promote a stronger economic recovery in a context of price
stability.

Dudley, Vice Chairman; Elizabeth A. Duke; Richard W. Fisher; Narayana Kocherlakota; Charles I.
Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen. Voting against the action
was Charles L. Evans, who supported additional policy accommodation at this time.

Release Date: September 21November 2, 2011


Information received since the Federal Open Market Committee met in AugustSeptember
indicates that economic growth remains slow. Recentstrengthened somewhat in the third quarter,
reflecting in part a reversal of the temporary factors that had weighed on growth earlier in the
year. Nonetheless, recent indicators point to continuing weakness in overall labor market
conditions, and the unemployment rate remains elevated. Household spending has been
increasingincreased at only a modestsomewhat faster pace in recent months despite some
recovery in sales of motor vehicles as supply-chain disruptions eased. Investment. Business
investment in equipment and software has continued to expand, but investment in nonresidential
structures is still weak, and the housing sector remains depressed. However, business
investment in equipment and software continues to expand. Inflation appears to have moderated
since earlier in the year as prices of energy and some commodities have declined from their
peaks. Longer-term inflation expectations have remained stable.

price stability. The Committee continues to expect some pickup in thea moderate pace of
recoveryeconomic growth over coming quarters butand consequently anticipates that the
unemployment rate will decline only gradually toward levels that the Committee judges to be
consistent with its dual mandate. Moreover, there are significant downside risks to the economic
outlook, including strains in global financial markets. The Committee also anticipates that inflation
will settle, over coming quarters, at levels at or below those consistent with the Committee's dual
mandate as the effects of past energy and other commodity price increases dissipate further.
However, the Committee will continue to pay close attention to the evolution of inflation and
inflation expectations.

consistent with the dual mandate, the Committee decided today to continue its program to extend
the average maturity of its holdings of securities. as announced in September. The Committee
intends to purchase, by the endis maintaining its existing policies of June 2012, $400
billionreinvesting principal payments from its holdings of Treasury securities with remaining
maturities of 6 years to 30 yearsagency debt and to sell an equal amount of Treasuryagency
mortgage-backed securities in agency mortgage-backed securities with remaining maturities of 3
years or less. This program should put downward pressure on longer-term interest rates and help
make broader financial conditions more accommodativeof rolling over maturing Treasury
securities holdings and is prepared to adjust those holdings as appropriate.

To help support conditions in mortgage markets, the Committee will now reinvest principal
payments from its holdings of agency debt and agency mortgage-backed securities in agency
mortgage-backed securities. In addition, the Committee will maintain its existing policy of rolling
over maturing Treasury securities at auction.


The Committee discussed the range of policy tools available to promote a stronger economic
recovery in a context of price stability. It will continue to assess the economic outlook in light of
incoming information and is prepared to employ its tools as appropriateto promote a stronger

Dudley, Vice Chairman; Elizabeth A. Duke; Richard W. Fisher; Narayana Kocherlakota; Charles
L. EvansI. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen. Voting against
the action were Richard W. Fisher, Narayana Kocherlakota, andwas Charles I. PlosserL. Evans,
who did not supportsupported additional policy accommodation at this time.

Release Date: August 9September 21, 2011


Information received since the Federal Open Market Committee met in JuneAugust indicates that
economic growth so far this year has been considerably slower than the Committee had
expected. Indicators suggest a deterioration in remains slow. Recent indicators point to
continuing weakness in overall labor market conditions in recent months, and the unemployment
rate has moved up. remains elevated. Household spending has flattened out, investmentbeen
increasing at only a modest pace in recent months despite some recovery in sales of motor
vehicles as supply-chain disruptions eased. Investment in nonresidential structures is still weak,
and the housing sector remains depressed. However, business investment in equipment and
software continues to expand. Temporary factors, including the damping effect of higher food
and energy prices on consumer purchasing power and spending as well as supply chain
disruptions associated with the tragic events in Japan, appear to account for only some of the
recent weakness in economic activity. Inflation picked upappears to have moderated since
earlier in the year, mainly reflecting higher prices for some commodities and imported goods, as
well as the supply chain disruptions. More recently, inflation has moderated as prices of energy
and some commodities have declined from their earlier peaks. Longer-term inflation expectations
have remained stable.

price stability. The Committee now expects a somewhat slower continues to expect some pickup
in the pace of recovery over coming quarters than it did at the time of the previous meeting
andbut anticipates that the unemployment rate will decline only gradually toward levels that the
Committee judges to be consistent with its dual mandate. Moreover, there are significant
downside risks to the economic outlook have increased, including strains in global financial
markets. The Committee also anticipates that inflation will settle, over coming quarters, at levels
at or below those consistent with the Committee's dual mandate as the effects of past energy and
other commodity price increases dissipate further. However, the Committee will continue to pay
close attention to the evolution of inflation and inflation expectations.

To promote the ongoingsupport a stronger economic recovery and to help ensure that inflation,
over time, is at levels consistent with itsthe dual mandate, the Committee decided today to extend
the average maturity of its holdings of securities. The Committee intends to purchase, by the end
of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years
and to sell an equal amount of Treasury securities with remaining maturities of 3 years or less.
This program should put downward pressure on longer-term interest rates and help make broader
financial conditions more accommodative. The Committee will regularly review the size and
composition of its securities holdings and is prepared to adjust those holdings as appropriate.

To help support conditions in mortgage markets, the Committee will now reinvest principal
payments from its holdings of agency debt and agency mortgage-backed securities in agency
mortgage-backed securities. In addition, the Committee will maintain its existing policy of rolling
over maturing Treasury securities at auction.

The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4
percent. The Committee and currently anticipates that economic conditions--including low rates
of resource utilization and a subdued outlook for inflation over the medium run--are likely to
warrant exceptionally low levels for the federal funds rate at least through mid-2013. The
Committee also will maintain its existing policy of reinvesting principal payments from its
securities holdings. The Committee will regularly review the size and composition of its securities
holdings and is prepared to adjust those holdings as appropriate.

recovery in a context of price stability. It will continue to assess the economic outlook in light of
incoming information and is prepared to employ theseits tools as appropriate.

Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Sarah Bloom Raskin; Daniel K.
Tarullo; and Janet L. Yellen.

Voting against the action were: Richard W. Fisher, Narayana Kocherlakota, and Charles I.
Plosser, who would have preferred to continue to describe economic conditions as likely to
warrant exceptionally low levels for the federal funds rate for an extended period.

did not support additional policy accommodation at this time.

Release Date: June 22August 9, 2011


Information received since the Federal Open Market Committee met in April June indicates that
the economic recovery is continuing at a moderate pace, though somewhat more slowly growth
so far this year has been considerably slower than the Committee had expected. Also, recent
Indicators suggest a deterioration in overall labor market indicators have been weaker than
anticipated. The slower pace ofconditions in recent months, and the unemployment rate has
moved up. Household spending has flattened out, investment in nonresidential structures is still
weak, and the recovery reflects in parthousing sector remains depressed. However, business
investment in equipment and software continues to expand. Temporary factors that are likely to
be temporary, including the damping effect of higher food and energy prices on consumer
purchasing power and spending as well as supply chain disruptions associated with the tragic
events in Japan. Household spending and business investment in equipment and software
continue, appear to expand. However, investment in nonresidential structures is still weak,
andaccount for only some of the housing sector continues to be depressed. recent weakness in
economic activity. Inflation has picked up earlier in recent months, the year, mainly
reflecting higher prices forsomefor some commodities and imported goods, as well as the recent
supply chain disruptions. However, longer More recently, inflation has moderated as prices of
energy and some commodities have declined from their earlier peaks. Longer-term inflation
expectations have remained stable.

price stability. The unemployment rate remains elevated; however, the Committee now expects
the a somewhat slower pace of recovery to pick up over coming quarters than it did at the time of
the previous meeting and anticipates that the unemployment rate to resume its gradualwill decline
only gradually toward levels that the Committee judges to be consistent with its dual
mandate. Inflation has moved up recently, but Moreover, downside risks to the economic
outlook have increased. The Committee also anticipates that inflation will subside tosettle, over
coming quarters, at levels at or below those consistent with the Committee's dual mandate as the
effects of past energy and other commodity price increases dissipate. further. However, the
Committee will continue to pay close attention to the evolution of inflation and inflation
expectations.

To promote the ongoing economic recovery and to help ensure that inflation, over time, is at
levels consistent with its mandate, the Committee decided today to keep the target range for the
federal funds rate at 0 to 1/4 percent. The Committee continues to anticipatecurrently
anticipates that economic conditions--including low rates of resource utilization and a subdued
outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the
federal funds rate for an extended period. at least through mid-2013. The Committee will
complete its purchases of $600 billion of longer-term Treasury securities by the end of this month
andalso will maintain its existing policy of reinvesting principal payments from its securities
holdings. The Committee will regularly review the size and composition of its securities holdings
and is prepared to adjust those holdings as appropriate.

recovery in a context of price stability. It will monitorcontinue to assess the economic outlook in
light of incoming information and financial developments and will actis prepared to employ these
tools as needed to best foster maximum employment and price stability.appropriate.

Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Richard W. Fisher; Narayana

Kocherlakota; Charles I. PlosserEvans; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L.
Yellen.

Voting against the action were: Richard W. Fisher, Narayana Kocherlakota, and Charles I.
Plosser, who would have preferred to continue to describe economic conditions as likely to
warrant exceptionally low levels for the federal funds rate for an extended period.



Information received since the Federal Open Market Committee met in March April indicates that
the economic recovery is proceedingcontinuing at a moderate pace and overall conditions in ,
though somewhat more slowly than the Committee had expected. Also, recent labor market
indicators have been weaker than anticipated. The slower pace of the recovery reflects in part
factors that are improving gradually. likely to be temporary, including the damping effect of higher
food and energy prices on consumer purchasing power and spending as well as supply chain
disruptions associated with the tragic events in Japan. Household spending and business
investment in equipment and software continue to expand. However, investment in
nonresidential structures is still weak, and the housing sector continues to be
depressed. Commodity prices have risen significantly since last summer, and concerns about
global supplies of crude oil have contributed to a further increase in oil prices since the
Committee met in March. Inflation has picked up in recent months, but mainly reflecting higher
prices forsome commodities and imported goods, as well as the recent supply chain
disruptions. However, longer-term inflation expectations have remained stable and measures of
underlying inflation are still subdued.

price stability. The unemployment rate remains elevated,; however, the Committee expects the
pace of recovery to pick up over coming quarters and measures of underlying inflation continue to
be somewhat low, relative tothe unemployment rate to resume its gradual decline toward levels
that the Committee judges to be consistent, over the longer run, with its dual mandate. Increases
in the prices Inflation has moved up recently, but the Committee anticipates that inflation will
subside to levels at or below those consistent with the Committee's dual mandate as the effects
of past energy and other commodities have pushed up inflation in recent months. The Committee
expects these effects to be transitory, but it will commodity price increases dissipate. However,
the Committee will continue to pay close attention to the evolution of inflation and inflation
expectations. The Committee continues to anticipate a gradual return to higher levels of resource
utilization in a context of price stability.

To promote a stronger pace ofthe ongoing economic recovery and to help ensure that inflation,
over time, is at levels consistent with its mandate, the Committee decided today to continue
expanding its holdings of securities as announced in November. In particular,keep the
Committee is maintaining its existing policy of reinvesting principal payments from its securities
holdingstarget range for the federal funds rate at 0 to 1/4 percent. The Committee continues to
anticipate that economic conditions--including low rates of resource utilization and will a subdued
outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the
federal funds rate for an extended period. The Committee will complete its purchases of $600
billion of longer-term Treasury securities by the end of the current quarter.this month and will
maintain its existing policy of reinvesting principal payments from its securities holdings. The
Committee will regularly review the size and composition of its securities holdings in light of
incoming information and is prepared to adjust those holdings as needed to best foster maximum
employment and price stability.appropriate.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and
continues to anticipate that economic conditions, including low rates of resource utilization,
subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low
levels for the federal funds rate for an extended period.

The Committee will continue to monitor the economic outlook and financial developments and will
employ its policy toolsact as necessary to support the economic recovery and to help ensure that

inflation, over time, is at levels consistent with its mandateneeded to best foster maximum
employment and price stability.

Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen.



Information received since the Federal Open Market Committee met in January suggestsMarch
indicates that the economic recovery is onproceeding at a firmer footing,moderate pace and
overall conditions in the labor market appear to beare improving gradually. Household spending
and business investment in equipment and software continue to expand. However, investment in
nonresidential structures is still weak, and the housing sector continues to be
depressed. Commodity prices have risen significantly since thelast summer, and concerns about
global supplies of crude oil have contributed to a sharp run-upfurther increase in oil prices since
the Committee met in March. Inflation has picked up in recent weeks. Nonetheless,months, but
longer-term inflation expectations have remained stable, and measures of underlying inflation
have beenare still subdued.

price stability. Currently, the The unemployment rate remains elevated, and measures of
underlying inflation continue to be somewhat low, relative to levels that the Committee judges to
be consistent, over the longer run, with its dual mandate. The recent increases Increases in the
prices of energy and other commodities are currently putting upward pressure onhave pushed up
inflation. in recent months. The Committee expects these effects to be transitory, but it will pay
close attention to the evolution of inflation and inflation expectations. The Committee continues
to anticipate a gradual return to higher levels of resource utilization in a context of price stability.

To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is
at levels consistent with its mandate, the Committee decided today to continue expanding its
holdings of securities as announced in November. In particular, the Committee is maintaining its
existing policy of reinvesting principal payments from its securities holdings and intends to
purchasewill complete purchases of $600 billion of longer-term Treasury securities by the end of
the secondcurrent quarter of 2011.. The Committee will regularly review the pacesize and
composition of its securities purchases and the overall size of the asset-purchase
programholdings in light of incoming information and will is prepared to adjust the programthose
holdings as needed to best foster maximum employment and price stability.


employ its policy tools as necessary to support the economic recovery and to help ensure that
inflation, over time, is at levels consistent with its mandate.

Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen.



Information received since the Federal Open Market Committee met in December
confirmsJanuary suggests that the economic recovery is continuing, though at on a rate that has
been insufficient to bring about a significant improvementfirmer footing, and overall conditions in
the labor market conditions. Growth in householdappear to be improving gradually. Household
spending picked up late last year, but remains constrained by high unemployment, modest
income growth, lower housing wealth, and tight credit. Business spending on and business
investment in equipment and software is rising, whilecontinue to expand. However, investment in
nonresidential structures is still weak. Employers remain reluctant to add to payrolls. The, and the
housing sector continues to be depressed. Although commodityCommodity prices have risen
significantly since the summer, and concerns about global supplies of crude oil have contributed
to a sharp run-up in oil prices in recent weeks. Nonetheless, longer-term inflation expectations
have remained stable, and measures of underlying inflation have been trending
downwardsubdued.

price stability. Currently, the unemployment rate isremains elevated, and measures of underlying
inflation arecontinue to be somewhat low, relative to levels that the Committee judges to be
consistent, over the longer run, with its dual mandate. Although The recent increases in the prices
of energy and other commodities are currently putting upward pressure on inflation. The
Committee anticipatesexpects these effects to be transitory, but it will pay close attention to the
evolution of inflation and inflation expectations. The Committee continues to anticipate a gradual
return to higher levels of resource utilization in a context of price stability, progress toward its
objectives has been disappointingly slow.

holdings of securities as announced in November. In particular, the Committee is maintaining its
existing policy of reinvesting principal payments from its securities holdings and intends to
purchase $600 billion of longer-term Treasury securities by the end of the second quarter of
2011. The Committee will regularly review the pace of its securities purchases and the overall
size of the asset-purchase program in light of incoming information and will adjust the program as
needed to best foster maximum employment and price stability.



Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; Kevin M. Warsh; and
Janet L. Yellen.



confirms that the economic recovery is continuing, though at a rate that has been insufficient to
bring down unemployment. Household spending is increasing at a moderate paceabout a
significant improvement in labor market conditions. Growth in household spending picked up late
last year, but remains constrained by high unemployment, modest income growth, lower housing
wealth, and tight credit. Business spending on equipment and software is rising, though less
rapidly than earlier in the year, while investment in nonresidential structures continues to beis still
weak. Employers remain reluctant to add to payrolls. The housing sector continues to be
depressed. LongerAlthough commodity prices have risen, longer-term inflation expectations have
remained stable, butand measures of underlying inflation have continued to trendbeen trending
downward.

price stability. Currently, the unemployment rate is elevated, and measures of underlying inflation
are somewhat low, relative to levels that the Committee judges to be consistent, over the longer
run, with its dual mandate. Although the Committee anticipates a gradual return to higher levels of
resource utilization in a context of price stability, progress toward its objectives has been
disappointingly slow.

holdings of securities as announced in November. TheIn particular, the Committee will maintainis
maintaining its existing policy of reinvesting principal payments from its securities holdings. In
addition, the Committee and intends to purchase $600 billion of longer-term Treasury securities
by the end of the second quarter of 2011, a pace of about $75 billion per month.. The Committee
will regularly review the pace of its securities purchases and the overall size of the asset-
purchase program in light of incoming information and will adjust the program as needed to best
foster maximum employment and price stability.



Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Sandra PianaltoCharles L. Evans;
Richard W. Fisher; Narayana Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Eric S.
Rosengren; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.

Voting against the policy was Thomas M. Hoenig. In light of the improving economy, Mr. Hoenig
was concerned that a continued high level of monetary accommodation would increase the risks
of future economic and financial imbalances and, over time, would cause an increase in long-term
inflation expectations that could destabilize the economy.



Information received since the Federal Open Market Committee met in SeptemberNovember
confirms that the pace ofeconomic recovery in output and employment continuesis continuing,
though at a rate that has been insufficient to be slow.bring down unemployment. Household
spending is increasing graduallyat a moderate pace, but remains constrained by high
unemployment, modest income growth, lower housing wealth, and tight credit. Business spending
on equipment and software is rising, though less rapidly than earlier in the year, while investment
in nonresidential structures continues to be weak. Employers remain reluctant to add to payrolls.
Housing starts continueThe housing sector continues to be depressed. Longer-term inflation
expectations have remained stable, but measures of underlying inflation have trended lower in
recent quarterscontinued to trend downward.

resource utilization in a context of price stability, progress toward its objectives has been
disappointingly slow.

at levels consistent with its mandate, the Committee decided today to expandcontinue expanding
its holdings of securities as announced in November. The Committee will maintain its existing
policy of reinvesting principal payments from its securities holdings. In addition, the Committee
intends to purchase a further $600 billion of longer-term Treasury securities by the end of the
second quarter of 2011, a pace of about $75 billion per month. The Committee will regularly
review the pace of its securities purchases and the overall size of the asset-purchase program in
light of incoming information and will adjust the program as needed to best foster maximum
employment and price stability.



Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Sandra Pianalto; Sarah Bloom
Raskin; Eric S. Rosengren; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.

Voting against the policy was Thomas M. Hoenig. In light of the improving economy, Mr. Hoenig
believed the risks of additional securities purchases outweighed the benefits. Mr. Hoenig also
was concerned that thisa continued high level of monetary accommodation increasedwould
increase the risks of future economic and financial imbalances and, over time, would cause an
increase in long-term inflation expectations that could destabilize the economy.



Information received since the Federal Open Market Committee met in August
indicatesSeptember confirms that the pace of recovery in output and employment has slowed in
recent monthscontinues to be slow. Household spending is increasing gradually, but remains
constrained by high unemployment, modest income growth, lower housing wealth, and tight
credit. Business spending on equipment and software is rising, though less rapidly than earlier in
the year, while investment in nonresidential structures continues to be weak. Employers remain
reluctant to add to payrolls. Housing starts are at acontinue to be depressed level. Bank lending
has continued to contract. Longer-term inflation expectations have remained stable, but at a
reduced rate measures of underlying inflation have trended lower in recent months. Thequarters.

resource utilization in a context of price stability, although the pace of economic recovery is likely
to be modest in the near termprogress toward its objectives has been disappointingly slow.

Measures of underlying inflation are currently at levels somewhat below those the Committee
judges most consistent, over the longer run, with its mandate to promote maximum employment
and price stability. With substantial resource slack continuing to restrain cost pressures and
longer-term inflation expectations stable, inflation is likely to remain subdued for some time before
rising to levels the Committee considers consistent with its mandate.

at levels consistent with its mandate, the Committee decided today to expand its holdings of
securities. The Committee will maintain its existing policy of reinvesting principal payments from
its securities holdings. In addition, the Committee intends to purchase a further $600 billion of
longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75
billion per month. The Committee will regularly review the pace of its securities purchases and the
overall size of the asset-purchase program in light of incoming information and will adjust the
program as needed to best foster maximum employment and price stability.

levels for the federal funds rate for an extended period. The Committee also will maintain its
existing policy of reinvesting principal payments from its securities holdings.

The Committee will continue to monitor the economic outlook and financial developments and is
prepared to provide additional accommodation if neededwill employ its policy tools as necessary
to support the economic recovery and to returnhelp ensure that inflation, over time, tois at levels
consistent with its mandate.

Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Sandra Pianalto; Sarah Bloom
Raskin; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh; and Janet L. Yellen.

Voting against the policy was Thomas M. Hoenig, who judged that the economy continues to
recover at a moderate pace. Accordingly, he believed that continuing to express the expectation

of exceptionally low levels of the federal funds rate for an extended period was no longer
warranted and will lead to future imbalances that undermine stable long-run growth. In addition,
given economic and financial conditions, Mr. Hoenig did not believe that continuing to reinvest
principal payments from its securities holdings was required to support the Committee’s policy
objectives.

Voting against the policy was Thomas M. Hoenig. Mr. Hoenig believed the risks of additional
securities purchases outweighed the benefits. Mr. Hoenig also was concerned that this continued
high level of monetary accommodation increased the risks of future financial imbalances and,
over time, would cause an increase in long-term inflation expectations that could destabilize the
economy.



Information received since the Federal Open Market Committee met in JuneAugust indicates that
the pace of recovery in output and employment has slowed in recent months. Household
spending is increasing gradually, but remains constrained by high unemployment, modest income
growth, lower housing wealth, and tight credit. Business spending on equipment and software is
rising; however,, though less rapidly than earlier in the year, while investment in nonresidential
structures continues to be weak and employers. Employers remain reluctant to add to payrolls.
Housing starts remainare at a depressed level. Bank lending has continued to contract.
Nonetheless, the, but at a reduced rate in recent months. The Committee anticipates a gradual
return to higher levels of resource utilization in a context of price stability, although the pace of
economic recovery is likely to be more modest in the near term than had been anticipated.

Measures of underlying inflation have trended lower in recent quarters andare currently at levels
somewhat below those the Committee judges most consistent, over the longer run, with its
mandate to promote maximum employment and price stability. With substantial resource slack
continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is
likely to beremain subdued for some time before rising to levels the Committee considers
consistent with its mandate.

levels offor the federal funds rate for an extended period. The Committee also will maintain its
existing policy of reinvesting principal payments from its securities holdings.

To help support the economic recovery in a context of price stability, the Committee will keep
constant the Federal Reserve's holdings of securities at their current level by reinvesting principal
payments from agency debt and agency mortgage-backed securities in longer-term Treasury
1
securities. The Committee will continue to roll over the Federal Reserve's holdings of Treasury
securities as they mature.

employis prepared to provide additional accommodation if needed to support the economic
recovery and to return inflation, over time, to levels consistent with its policy tools as necessary to
promote economic recovery and price stabilitymandate.

Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; Eric
S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh.

Voting against the policy was Thomas M. Hoenig, who judgesjudged that the economy is
recovering modestly, as projectedcontinues to recover at a moderate pace. Accordingly, he
believed that continuing to express the expectation of exceptionally low levels of the federal funds
rate for an extended period was no longer warranted and limits the Committee's abilitywill lead to
adjust policy when needed.future imbalances that undermine stable long-run growth. In addition,
given economic and financial conditions, Mr. Hoenig did not believe that keeping constant the
size of the Federal Reserve's holdings of longer-termcontinuing to reinvest principal payments
from its securities at their current level holdings was required to support a return to the
Committee'sCommittee’s policy objectives.



Information received since the Federal Open Market Committee met in April suggestsJune
indicates that the economicpace of recovery is proceedingin output and that the labor market is
improving gradually.employment has slowed in recent months. Household spending is increasing
gradually, but remains constrained by high unemployment, modest income growth, lower housing
wealth, and tight credit. Business spending on equipment and software has risen significantlyis
rising; however, investment in nonresidential structures continues to be weak and employers
remain reluctant to add to payrolls. Housing starts remain at a depressed level. Financial
conditions have become less supportive of economic growth on balance, largely reflecting
developments abroad. Bank lending has continued to contract in recent months. Nonetheless, the
Committee anticipates a gradual return to higher levels of resource utilization in a context of price
stability, although the pace of economic recovery is likely to be moderate for a timemore modest
in the near term than had been anticipated.

PricesMeasures of energy and other commodities have declined somewhat in recent months, and
underlying inflation hashave trended lower. With in recent quarters and, with substantial resource
slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation
is likely to be subdued for some time.

levels of the federal funds rate for an extended period.

To help support the economic recovery in a context of price stability, the Committee will keep
constant the Federal Reserve's holdings of securities at their current level by reinvesting principal
payments from agency debt and agency mortgage-backed securities in longer-term Treasury
1
securities. The Committee will continue to roll over the Federal Reserve's holdings of Treasury
securities as they mature.

employ its policy tools as necessary to promote economic recovery and price stability.

S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh.

Voting against the policy action was Thomas M. Hoenig, who judges that the economy is
recovering modestly, as projected. Accordingly, he believed that continuing to express the
expectation of exceptionally low levels of the federal funds rate for an extended period was no
longer warranted because it could lead to a build-up of future imbalances and increase risks to
longer-run macroeconomic and financial stability, while limiting the Committee’s flexibility to begin
raising rates modestlyand limits the Committee's ability to adjust policy when needed. In addition,
given economic and financial conditions, Mr. Hoenig did not believe that keeping constant the
size of the Federal Reserve's holdings of longer-term securities at their current level was required
to support a return to the Committee's policy objectives.



Information received since the Federal Open Market Committee met in MarchApril suggests that
the economic activity has continued to strengthenrecovery is proceeding and that the labor
market is beginning to improve. Growth in householdimproving gradually. Household spending
has picked up recentlyis increasing but remains constrained by high unemployment, modest
income growth, lower housing wealth, and tight credit. Business spending on equipment and
software has risen significantly; however, investment in nonresidential structures is
decliningcontinues to be weak and employers remain reluctant to add to payrolls. Housing starts
have edged up but remain at a depressed level. While bank lending continues to contract,
financial marketFinancial conditions remainhave become less supportive of economic growth.
Although the pace of economic recovery is likely to be moderate for a time on balance, largely
reflecting developments abroad. Bank lending has continued to contract in recent months.
Nonetheless, the Committee anticipates a gradual return to higher levels of resource utilization in
a context of price stability, although the pace of economic recovery is likely to be moderate for a
time.

Prices of energy and other commodities have declined somewhat in recent months, and
underlying inflation has trended lower. With substantial resource slack continuing to restrain cost
pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some
time.

levels of the federal funds rate for an extended period.

employ its policy tools as necessary to promote economic recovery and price stability.

In light of improved functioning of financial markets, the Federal Reserve has closed all but one of
the special liquidity facilities that it created to support markets during the crisis. The only
remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close
on June 30 for loans backed by new-issue commercial mortgage-backed securities; it closed on
March 31 for loans backed by all other types of collateral.

S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the policy action was
Thomas M. Hoenig, who believed that continuing to express the expectation of exceptionally low
levels of the federal funds rate for an extended period was no longer warranted because it could
lead to a build-up of future imbalances and increase risks to longer -run macroeconomic and
financial stability, while limiting the Committee’s flexibility to begin raising rates modestly.



Information received since the Federal Open Market Committee met in JanuaryMarch suggests
that economic activity has continued to strengthen and that the labor market is stabilizing.
Householdbeginning to improve. Growth in household spending is expanding at a moderate
ratehas picked up recently but remains constrained by high unemployment, modest income
growth, lower housing wealth, and tight credit. Business spending on equipment and software has
risen significantly. However; however, investment in nonresidential structures is declining,
housing starts have been flat at a depressed level, and employers remain reluctant to add to
payrolls. Housing starts have edged up but remain at a depressed level. While bank lending
continues to contract, financial market conditions remain supportive of economic growth.
Although the pace of economic recovery is likely to be moderate for a time, the Committee
anticipates a gradual return to higher levels of resource utilization in a context of price stability.

With substantial resource slack continuing to restrain cost pressures and longer-term inflation
expectations stable, inflation is likely to be subdued for some time.

levels of the federal funds rate for an extended period. To provide support to mortgage lending
and housing markets and to improve overall conditions in private credit markets, the Federal
Reserve has been purchasing $1.25 trillion of agency mortgage-backed securities and about
$175 billion of agency debt; those purchases are nearing completion, and the remaining
transactions will be executed by the end of this month. The Committee will continue to monitor
the economic outlook and financial developments and will employ its policy tools as necessary to
promote economic recovery and price stability.

In light of improved functioning of financial markets, the Federal Reserve has been closingclosed
all but one of the special liquidity facilities that it created to support markets during the crisis. The
only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to
close on June 30 for loans backed by new-issue commercial mortgage-backed securities and; it
closed on March 31 for loans backed by all other types of collateral.

Thomas M. Hoenig, who believed that continuing to express the expectation of exceptionally low
levels of the federal funds rate for an extended period was no longer warranted because it could
lead to the buildupa build-up of financialfuture imbalances and increase risks to longer- run
macroeconomic and financial stability, while limiting the Committee’s flexibility to begin raising
rates modestly.



Information received since the Federal Open Market Committee met in DecemberJanuary
suggests that economic activity has continued to strengthen and that the deterioration in the labor
market is abatingstabilizing. Household spending is expanding at a moderate rate but remains
constrained by a weak labor markethigh unemployment, modest income growth, lower housing
wealth, and tight credit. Business spending on equipment and software appears to be picking up,
buthas risen significantly. However, investment in nonresidential structures is still
contractingdeclining, housing starts have been flat at a depressed level, and employers remain
reluctant to add to payrolls. Firms have brought inventory stocks into better alignment with sales.
While bank lending continues to contract, financial market conditions remain supportive of
economic growth. Although the pace of economic recovery is likely to be moderate for a time, the
Committee anticipates a gradual return to higher levels of resource utilization in a context of price
stability.

With substantial resource slack continuing to restrain cost pressures and with longer-term
inflation expectations stable, inflation is likely to be subdued for some time.

Reserve is in the process ofhas been purchasing $1.25 trillion of agency mortgage-backed
securities and about $175 billion of agency debt. In order to promote a smooth transition in
markets, the Committee is gradually slowing the pace of these; those purchases are nearing
completion, and it anticipates that thesethe remaining transactions will be executed by the end of
the first quarter.this month. The Committee will continue to evaluate its purchases of securities in
light of the evolving monitor the economic outlook and conditions in financial
marketsdevelopments and will employ its policy tools as necessary to promote economic
recovery and price stability.

In light of improved functioning of financial markets, the Federal Reserve will behas been closing
the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, the
Commercial Paper Funding Facility, the Primary Dealer Credit Facility, and the Term Securities
Lending Facility on February 1, as previously announced. In addition, the temporaryspecial
liquidity swap arrangements between the Federal Reserve and other central banks will expire on
February 1. The Federal Reserve is in the process of winding down its Term Auction Facility: $50
billion in 28-day credit will be offered on February 8 and $25 billion in 28-day credit will be offered
at the final auction on March 8. The anticipated expiration dates for the facilities that it created to
support markets during the crisis. The only remaining such program, the Term Asset-Backed
Securities Loan Facility remain set at, is scheduled to close on June 30 for loans backed by new-
issue commercial mortgage-backed securities and on March 31 for loans backed by all other
types of collateral. The Federal Reserve is prepared to modify these plans if necessary to support
financial stability and economic growth.

Thomas M. Hoenig, who believed that economic and financial conditions had changed sufficiently
thatcontinuing to express the expectation of exceptionally low levels of the federal funds rate for

an extended period was no longer warranted because it could lead to the buildup of financial
imbalances and increase risks to longer-run macroeconomic and financial stability.



suggests that economic activity has continued to pick upstrengthen and that the deterioration in
the labor market is abating. The housing sector has shown some signs of improvement over
recent months. Household spending appears to beis expanding at a moderate rate, though it but
remains constrained by a weak labor market, modest income growth, lower housing wealth, and
tight credit. Businesses are still cutting backBusiness spending on fixedequipment and software
appears to be picking up, but investment, though at a slower pace, and in structures is still
contracting and employers remain reluctant to add to payrolls; they continue to make progress in
bringing. Firms have brought inventory stocks into better alignment with sales. Financial While
bank lending continues to contract, financial market conditions have become more remain
supportive of economic growth. Although the pace of economic activityrecovery is likely to remain
weakbe moderate for a time, the Committee anticipates that policy actions to stabilize financial
markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a
strengthening of economic growth and a gradual return to higher levels of resource utilization in a
context of price stability.

With substantial resource slack likelycontinuing to continue to dampenrestrain cost pressures and
with longer-term inflation expectations stable, the Committee expects that inflation will remainis
likely to be subdued for some time.

Reserve is in the process of purchasing $1.25 trillion of agency mortgage-backed securities and
about $175 billion of agency debt. In order to promote a smooth transition in markets, the
Committee is gradually slowing the pace of these purchases, and it anticipates that these
transactions will be executed by the end of the first quarter of 2010. The Committee will continue
to evaluate the timing and overall amounts of its purchases of securities in light of the evolving
economic outlook and conditions in financial markets.

In light of ongoing improvements in theimproved functioning of financial markets, the Committee
and the Board of Governors anticipate that most of the Federal Reserve’s special liquidity
facilitiesReserve will expire on February 1, 2010, consistent with the Federal Reserve’s
announcement of June 25, 2009. These facilities includebe closing the Asset-Backed Commercial
Paper Money Market Mutual Fund Liquidity Facility, the Commercial Paper Funding Facility, the
Primary Dealer Credit Facility, and the Term Securities Lending Facility. The Federal Reserve will
also be working with its central bank counterparties to close its on February 1, as previously
announced. In addition, the temporary liquidity swap arrangements bybetween the Federal
Reserve and other central banks will expire on February 1. The Federal Reserve expects that
amounts provided under the is in the process of winding down its Term Auction Facility: $50
billion in 28-day credit will continue tobe offered on February 8 and $25 billion in 28-day credit will
be scaled back in early 2010offered at the final auction on March 8. The anticipated expiration
dates for the Term Asset-Backed Securities Loan Facility remain set at June 30, 2010, for loans
backed by new-issue commercial mortgage-backed securities and March 31, 2010, for loans
backed by all other types of collateral. The Federal Reserve is prepared to modify these plans if
necessary to support financial stability and economic growth.

Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn;
Jeffrey M. Lacker; Dennis P. LockhartSandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and
Kevin M. Warsh; and Janet L. Yellen. Voting against the policy action was Thomas M. Hoenig,
who believed that economic and financial conditions had changed sufficiently that the expectation
of exceptionally low levels of the federal funds rate for an extended period was no longer
warranted.



Information received since the Federal Open Market Committee met in SeptemberNovember
suggests that economic activity has continued to pick up. Conditions in financial markets were
roughly unchanged, on balance, over and that the intermeeting period. Activitydeterioration in the
labor market is abating. The housing sector has increasedshown some signs of improvement
over recent months. Household spending appears to be expanding butat a moderate rate, though
it remains constrained by ongoing job losses, sluggisha weak labor market, modest income
growth, lower housing wealth, and tight credit. Businesses are still cutting back on fixed
investment and staffing, though at a slower pace, and remain reluctant to add to payrolls; they
continue to make progress in bringing inventory stocks into better alignment with sales. Financial
market conditions have become more supportive of economic growth. Although economic activity
is likely to remain weak for a time, the Committee anticipates that policy actions to stabilize
financial markets and institutions, fiscal and monetary stimulus, and market forces will
supportcontribute to a strengthening of economic growth and a gradual return to higher levels of
resource utilization in a context of price stability.

With substantial resource slack likely to continue to dampen cost pressures and with longer-term
inflation expectations stable, the Committee expects that inflation will remain subdued for some
time.

In these circumstances, the Federal Reserve will continue to employ a wide range of tools to
promote economic recovery and to preserve price stability. The Committee will maintain the
target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that
economic conditions, including low rates of resource utilization, subdued inflation trends, and
stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate
for an extended period. To provide support to mortgage lending and housing markets and to
improve overall conditions in private credit markets, the Federal Reserve will purchase a total ofis
in the process of purchasing $1.25 trillion of agency mortgage-backed securities and about $175
billion of agency debt. The amount of agency debt purchases, while somewhat less than the
previously announced maximum of $200 billion, is consistent with the recent path of purchases
and reflects the limited availability of agency debt. In order to promote a smooth transition in
markets, the Committee willis gradually slowslowing the pace of itsthese purchases of both
agency debt, and agency mortgage-backed securities andit anticipates that these transactions
will be executed by the end of the first quarter of 2010. The Committee will continue to evaluate
the timing and overall amounts of its purchases of securities in light of the evolving economic
outlook and conditions in financial markets. The Federal Reserve is monitoring the size and
composition of its balance sheet and will make adjustments to its credit and liquidity programs as
warranted.

In light of ongoing improvements in the functioning of financial markets, the Committee and the
Board of Governors anticipate that most of the Federal Reserve’s special liquidity facilities will
expire on February 1, 2010, consistent with the Federal Reserve’s announcement of June 25,
2009. These facilities include the Asset-Backed Commercial Paper Money Market Mutual Fund
Liquidity Facility, the Commercial Paper Funding Facility, the Primary Dealer Credit Facility, and
the Term Securities Lending Facility. The Federal Reserve will also be working with its central
bank counterparties to close its temporary liquidity swap arrangements by February 1. The
Federal Reserve expects that amounts provided under the Term Auction Facility will continue to
be scaled back in early 2010. The anticipated expiration dates for the Term Asset-Backed
Securities Loan Facility remain set at June 30, 2010, for loans backed by new-issue commercial
mortgage-backed securities and March 31, 2010, for loans backed by all other types of collateral.

The Federal Reserve is prepared to modify these plans if necessary to support financial stability
and economic growth.

Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Jeffrey M. Lacker;
Dennis P. Lockhart; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.



Information received since the Federal Open Market Committee met in AugustSeptember
suggests that economic activity has pickedcontinued to pick up following its severe downturn. .
Conditions in financial markets have improved further, and activitywere roughly unchanged, on
balance, over the intermeeting period. Activity in the housing sector has increased. over recent
months. Household spending seemsappears to be stabilizing,expanding but remains constrained
by ongoing job losses, sluggish income growth, lower housing wealth, and tight
credit. Businesses are still cutting back on fixed investment and staffing, though at a slower
pace; they continue to make progress in bringing inventory stocks into better alignment with
sales. Although economic activity is likely to remain weak for a time, the Committee anticipates
that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and
market forces will support a strengthening of economic growth and a gradual return to higher
levels of resource utilization in a context of price stability.

With substantial resource slack likely to continue to dampen cost pressures and with longer-term
inflation expectations stable, the Committee expects that inflation will remain subdued for some
time.

In these circumstances, the Federal Reserve will continue to employ a wide range of tools to
promote economic recovery and to preserve price stability. The Committee will maintain the
target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that
economic conditions, including low rates of resource utilization, subdued inflation trends, and
stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate
for an extended period. To provide support to mortgage lending and housing markets and to
improve overall conditions in private credit markets, the Federal Reserve will purchase a total of
$1.25 trillion of agency mortgage-backed securities and up to $200about $175 billion of agency
debt. The Committee will gradually slow the pace of these amount of agency debt purchases in,
while somewhat less than the previously announced maximum of $200 billion, is consistent with
the recent path of purchases and reflects the limited availability of agency debt. In order to
promote a smooth transition in markets , the Committee will gradually slow the pace of its
purchases of both agency debt and agency mortgage-backed securities and anticipates that
theythese transactions will be executed by the end of the first quarter of 2010. As previously
announced, the Federal Reserve’s purchases of $300 billion of Treasury securities will be
completed by the end of October 2009. The Committee will continue to evaluate the timing and
overall amounts of its purchases of securities in light of the evolving economic outlook and
conditions in financial markets. The Federal Reserve is monitoring the size and composition of its
balance sheet and will make adjustments to its credit and liquidity programs as warranted.




Information received since the Federal Open Market Committee met in JuneAugust suggests that
economic activity is leveling out.has picked up following its severe downturn. Conditions in
financial markets have improved further, and activity in recent weeks.the housing sector has
increased. Household spending has continuedseems to show signs ofbe stabilizing, but remains
constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight
credit. Businesses are still cutting back on fixed investment and staffing but are making, though
at a slower pace; they continue to make progress in bringing inventory stocks into better
alignment with sales. Although economic activity is likely to remain weak for a time, the
Committee continues to anticipateanticipates that policy actions to stabilize financial markets and
institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual
resumptionsupport a strengthening of sustainable economic growth and a gradual return to higher
levels of resource utilization in a context of price stability.

The prices of energy and other commodities have risen of late. However,With substantial
resource slack is likely to continue to dampen cost pressures, and and with longer-term inflation
expectations stable, the Committee expects that inflation will remain subdued for some time.

In these circumstances, the Federal Reserve will continue to employ all availablea wide range of
tools to promote economic recovery and to preserve price stability. The Committee will maintain
the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that
economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an
extended period. As previously announced, to To provide support to mortgage lending and
housing markets and to improve overall conditions in private credit markets, the Federal Reserve
will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200
billion of agency debt. The Committee will gradually slow the pace of these purchases in order to
promote a smooth transition in markets and anticipates that they will be executed by the end of
the year. In additionfirst quarter of 2010. As previously announced, the Federal Reserve is in the
process of buying Reserve’s purchases of $300 billion of Treasury securities. To promote a
smooth transition in markets as these purchases of Treasury securities are will be completed, the
Committee has decided to gradually slow the pace of these transactions and anticipates that the
full amount will be purchased by the end of October. 2009. The Committee will continue to
evaluate the timing and overall amounts of its purchases of securities in light of the evolving
economic outlook and conditions in financial markets. The Federal Reserve is monitoring the
size and composition of its balance sheet and will make adjustments to its credit and liquidity
programs as warranted.




Information received since the Federal Open Market Committee met in AprilJune suggests that
the pace of economic contractionactivity is slowingleveling out. Conditions in financial markets
have generally improved further in recent monthsweeks. Household spending has shown further
continued to show signs of stabilizing but remains constrained by ongoing job losses, sluggish
income growth, lower housing wealth, and tight credit. Businesses are still cutting back on fixed
investment and staffing but appear to beare making progress in bringing inventory stocks into
better alignment with sales. Although economic activity is likely to remain weak for a time, the
Committee continues to anticipate that policy actions to stabilize financial markets and
institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual
resumption of sustainable economic growth in a context of price stability.

The prices of energy and other commodities have risen of late. However, substantial resource
slack is likely to dampen cost pressures, and the Committee expects that inflation will remain
subdued for some time.

In these circumstances, the Federal Reserve will employ all available tools to promote economic
recovery and to preserve price stability. The Committee will maintain the target range for the
federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are
likely to warrant exceptionally low levels of the federal funds rate for an extended period. As
previously announced, to provide support to mortgage lending and housing markets and to
improve overall conditions in private credit markets, the Federal Reserve will purchase a total of
up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by
the end of the year. In addition, the Federal Reserve will buy up to is in the process of buying
$300 billion of Treasury securities. To promote a smooth transition in markets as these purchases
of Treasury securities are completed, the Committee has decided to gradually slow the pace of
these transactions and anticipates that the full amount will be purchased by autumnthe end of
October. The Committee will continue to evaluate the timing and overall amounts of its purchases
of securities in light of the evolving economic outlook and conditions in financial markets. The
Federal Reserve is monitoring the size and composition of its balance sheet and will make
adjustments to its credit and liquidity programs as warranted.




Information received since the Federal Open Market Committee met in March indicatesApril
suggests that the economy has continued to contract, though the pace of economic contraction
appears to be somewhat slower.is slowing. Conditions in financial markets have generally
improved in recent months. Household spending has shown further signs of stabilizing but
remains constrained by ongoing job losses, lower housing wealth, and tight credit. Weak sales
prospects and difficulties in obtaining credit have led businesses to cutBusinesses are cutting
back on inventories, fixed investment, and staffing. but appear to be making progress in bringing
inventory stocks into better alignment with sales. Although the economic outlook has improved
modestly since the March meeting, partly reflecting some easing of financial market conditions,
economic activity is likely to remain weak for a time. Nonetheless, the Committee continues to
anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary
stimulus, and market forces will contribute to a gradual resumption of sustainable economic
growth in a context of price stability.

In lightThe prices of increasing economicenergy and other commodities have risen of late.
However, substantial resource slack here and abroad,is likely to dampen cost pressures, and the
Committee expects that inflation will remain subdued. Moreover, the Committee sees for some
risk that inflation could persist for a time below rates that best foster economic growth and price
stability in the longer term.

federal funds rate at 0 to 1/4 percent and anticipatescontinues to anticipate that economic
conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended
period. As previously announced, to provide support to mortgage lending and housing markets
and to improve overall conditions in private credit markets, the Federal Reserve will purchase a
total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency
debt by the end of the year. In addition, the Federal Reserve will buy up to $300 billion of
Treasury securities by autumn. The Committee will continue to evaluate the timing and overall
amounts of its purchases of securities in light of the evolving economic outlook and conditions in
financial markets. The Federal Reserve is facilitating the extension of credit to households and
businesses and supporting the functioning of financial markets through a range of liquidity
programs. The Committee will continue to carefully monitormonitoring the size and composition of
the Federal Reserve'sits balance sheet in light of financial and economic developmentsand will
make adjustments to its credit and liquidity programs as warranted.




Information received since the Federal Open Market Committee met in JanuaryMarch indicates
that the economy continueshas continued to contract. Job, though the pace of contraction
appears to be somewhat slower. Household spending has shown signs of stabilizing but remains
constrained by ongoing job losses, declining equity andlower housing wealth, and tight credit
conditions have weighed on consumer sentiment and spending. Weaker. Weak sales prospects
and difficulties in obtaining credit have led businesses to cut back on inventories and, fixed
investment. U.S. exports have slumped as a number of major trading partners have also fallen
into recession. , and staffing. Although the near-term economic outlook has improved modestly
since the March meeting, partly reflecting some easing of financial market conditions, economic
activity is likely to remain weak for a time. Nonetheless, the Committee anticipatescontinues to
anticipate that policy actions to stabilize financial markets and institutions, together with fiscal and
monetary stimulus, and market forces will contribute to a gradual resumption of sustainable
economic growth in a context of price stability.

In light of increasing economic slack here and abroad, the Committee expects that inflation will
remain subdued. Moreover, the Committee sees some risk that inflation could persist for a time
below rates that best foster economic growth and price stability in the longer term.

federal funds rate at 0 to 1/4 percent and anticipates that economic conditions are likely to
warrant exceptionally low levels of the federal funds rate for an extended period. To As
previously announced, to provide greater support to mortgage lending and housing markets, the
Committee decided today to increase the size of the Federal Reserve’s balance sheet further by
purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its
total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of
agency debt this year by up to $100 billion to a total of up to $200 billion. Moreover, to help
improve overall conditions in private credit markets, the Committee decided toFederal Reserve
will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200
billion of agency debt by the end of the year. In addition, the Federal Reserve will buy up to $300
billion of longer-term Treasury securities overby autumn. The Committee will continue to evaluate
the next six months. The Federal Reserve has launched timing and overall amounts of its
purchases of securities in light of the Term Asset-Backed Securities Loan Facility to
facilitateevolving economic outlook and conditions in financial markets. The Federal Reserve is
facilitating the extension of credit to households and small businesses and anticipates
thatsupporting the functioning of financial markets through a range of eligible collateral for this
facility is likely to be expanded to include other financial assets. liquidity programs. The
Committee will continue to carefully monitor the size and composition of the Federal Reserve's
balance sheet in light of evolving financial and economic developments.


FOMC Statements (March 2008 to June 2012)

FOMC Statements (March 2008 to June 2012)

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