The Economics and Statistics Division maintains archives of previous publications for accountability purposes, but makes no updates to keep these documents current with the latest data revisions from Statistics Canada. As a result, information in older documents may not be accurate. Please exercise caution when referring to older documents. For the latest information and historical data, please contact the individual listed to the right.
<--- Return to Archive
For additional information relating to this article, please contact:
June 14, 2023US MONETARY POLICY At its scheduled Federal Open Market Committee (FOMC) meeting, the Federal Reserve announced that it maintained the target range for the federal funds rate at 5.0% to 5.25%. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previous announced plans.
Economic activity in the United States is estimated to have increased 1.3% (seasonally adjusted annualized rate) in the first quarter of 2023 reflecting gains in consumer spending, exports and non-residential fixed investment.
Job gains have been robust and the unemployment rate has remained low in recent months. While tighter credit conditions for households and businesses are expected to weigh on economic activity, hiring and inflation, the extent of these effects are still very uncertain. The Federal Reserve noted that the US banking system is sound and resilient.
US inflation has eased in recent months but remains elevated. The United States Consumer Price Index (not seasonally adjusted) for All Urban Consumers increased 4.0% year-over-year in May 2023. This was below the 4.9% increase reported in April 2023.
The Federal Reserve projects US economic activity to increase 1.0% in 2023, 1.1% in 2024 and 1.8% in 2025. Compared to the March projections, this represents an upgrade for 2023 but a slight downgrade for 2024 and 2025. Inflation is expected to average 3.9% this year before declining to 2.6% in 2024 and 2.2% in 2025. Inflation projections (core personal consumer expenditures) are also slightly upgraded for the 2023 and 2025 from the March projections and was unchanged for 2024.
The Committee will continue to monitor economic developments and is prepared to adjust the monetary policy measures as appropriate, taking into account information on labor market conditions, inflation pressures and inflation expectations, and financial and international developments. The next scheduled FOMC meeting will be held on July 25-26, 2023.
Source: US Federal Reserve, FOMC Statement
<--- Return to Archive
