Trump tells lawmakers he plans to issue reciprocal tariffs as early as today

The Federal Open Market Committee (FOMC) is firmly committed to fulfilling its statutory mandate from the Congress of promoting maximum employment, stable prices, and moderate longterm interest rates. The Committee seeks to explain its monetary policy decisions to the public as clearly as possible. Such clarity facilitates well-informed decisionmaking by households and businesses, reduces economic and financial uncertainty, increases the effectiveness of monetary policy, and enhances transparency and accountability, which are essential in a democratic society. Employment, inflation, and long-term interest rates fluctuate over time in response to economic and financial disturbances. Monetary policy plays an important role in stabilizing the economy in response to these disturbances. The Committee’s primary means of adjusting the stance of monetary policy is through changes in the target range for the federal funds rate. The Committee judges that the level of the federal funds rate consistent with maximum employment and price stability over the longer run has declined relative to its historical average. Therefore, the federal funds rate is likely to be constrained by its effective lower bound more frequently than in the past. Owing in part to the proximity of interest rates to the effective lower bound, the Committee judges that downward risks to employment and inflation have increased. The Committee is prepared to use its full range of tools to achieve its maximum employment and price stability goals. The maximum level of employment is a broad-based and inclusive goal that is not directly measurable and changes over time owing largely to nonmonetary factors that affect the structure and dynamics of the labor market. Consequently, it would not be appropriate to specify a fixed goal for employment; rather, the Committee’s policy decisions must be informed by assessments of the shortfalls of employment from i post: MONETARY POLICY REPORT: FED REMAINS STRONGLY COMMITTED TO ACHIEVING 2% INFLATION GOAL. post: FED MONETARY POLICY REPORT: FEDERAL RESERVE WILL WEIGH DATA AS IT CONSIDERS FUTURE POLICY MOVES. post: MONETARY POLICY REPORT: LABOR MARKET REMAINS SOLID AND APPEARS TO HAVE STABILISED. post: The Monetary Policy Report notes that market valuations remain elevated, signaling potential overvaluation risks. Despite economic uncertainties, investor optimism persists, driven by strong corporate earnings and expectations of continued monetary support. This raises concerns…