Diary 4/29: FOMC statement

Today, I have been working and staying at home all day.
I’m getting bored little bit because I can’t go out. However I can’t do anything about it.

Some states reopen the economic activities but it is still with restrictions.
Though I think reopen is too early for now, many people suffering from losing their jobs. The unemployment rate is rising gradually.
It is so terrible that I can’t easily disagree with the reopening.

The Federal Reserve Board issued FOMC statement. FOMC, or the Federal Open Market Committee is the monetary policy arm of the Federal Reserve System, the central bank of the United States.
This committee controls open market operations with FRB. The committee’s goal is maximum employment and price stability. On the other hand, the central bank of Japan, Bank of Japan, is targeting only price stability. Therefore the role is slightly different from U.S central bank.

FOMC’s statement in April 29 was that they maintain the market policy.
The main policy is below and it is maintained since last month.

The Target range of short term interest
FOMC decided to maintain the target range for the federal funds rate at 0 to 1/4 percent.
The committee expects to maintain this target range until it is confident that the economy has recovered (written “weathered recent events” in the statement).

The purchase assets
FOMC also said that the Federal Reserve will continue to purchase Treasury securities and agency residential and commercial mortgage-backed securities in the amounts needed to support smooth market functioning. The  point is that the purchase is without limitation.