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Press Release

Release Date: March 18, 2015
For immediate release
Information received since the Federal Open Market Committee met in January suggests that
economic growth has moderated somewhat. Labor market conditions have improved further, with
strong job gains and a lower unemployment rate. A range of labor market indicators suggests that
underutilization of labor resources continues to diminish. Household spending is rising moderately;
declines in energy prices have boosted household purchasing power. Business fixed investment is
advancing, while the recovery in the housing sector remains slow and export growth has weakened.
Inflation has declined further below the Committee's longer-run objective, largely reflecting
declines in energy prices. Market-based measures of inflation compensation remain low; surveybased measures of 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 that, with appropriate policy accommodation, economic
activity will expand at a moderate pace, with labor market indicators continuing to move toward
levels the Committee judges consistent with its dual mandate. The Committee continues to see the
risks to the outlook for economic activity and the labor market as nearly balanced. Inflation is
anticipated to remain near its recent low level in the near term, but the Committee expects inflation
to rise gradually toward 2 percent over the medium term as the labor market improves further and
the transitory effects of energy price declines and other factors dissipate. The Committee continues
to monitor inflation developments closely.
To support continued progress toward maximum employment and price stability, the Committee
today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate
remains appropriate. In determining how long to maintain this target range, the Committee will
assess progress--both realized and expected--toward its objectives of maximum employment and 2
percent inflation. This assessment will take into account a wide range of information, including
measures of labor market conditions, indicators of inflation pressures and inflation expectations, and
readings on financial and international developments. Consistent with its previous statement, the
Committee judges that an increase in the target range for the federal funds rate remains unlikely at
the April FOMC meeting. The Committee anticipates that it will be appropriate to raise the target
range for the federal funds rate when it has seen further improvement in the labor market and is
reasonably confident that inflation will move back to its 2 percent objective over the medium term.
This change in the forward guidance does not indicate that the Committee has decided on the timing
of the initial increase in the target range.
The Committee is maintaining its existing policy 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. This policy, by keeping the Committee's

holdings of longer-term securities at sizable levels, should help maintain accommodative financial
conditions.
When the Committee decides to begin to remove policy accommodation, it will take a balanced
approach consistent with its longer-run goals of maximum employment and inflation of 2 percent.
The Committee currently anticipates that, even after employment and inflation are near mandateconsistent levels, economic conditions may, for some time, warrant keeping the target federal funds
rate below levels the Committee views as normal in the longer run.
Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice
Chairman; Lael Brainard; Charles L. Evans; Stanley Fischer; Jeffrey M. Lacker; Dennis P.
Lockhart; Jerome H. Powell; Daniel K. Tarullo; and John C. Williams.