Chair

For release at 2:00 p.m.
EDT March 20, 2024
Recent indicators suggest that economic activity has been expanding at a solid pace. Job
gains have remained strong, and the unemployment rate has remained low. Inflation has eased
over the past year but remains elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of
2 percent over the longer run. The Committee judges that the risks to achieving its employment
and inflation goals are moving into better balance. The economic outlook is uncertain, and the
Committee remains highly attentive to inflation risks.
In support of its goals, the Committee decided to maintain the target range for the federal
funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the
federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and
the balance of risks. The Committee does not expect it will be appropriate to reduce the target
range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.
In addition, the Committee will continue reducing its holdings of Treasury securities and agency
debt and agency mortgage-backed securities, as described in its previously announced plans.
The Committee is strongly committed to returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to
monitor the implications of incoming information for the economic outlook. The Committee
would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that
could impede the attainment of the Committee’s goals. The Committee’s assessments will take
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into account a wide range of information, including readings on labor market conditions,
inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams,
Vice Chair; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa
D. Cook; Mary C. Daly; Philip N. Jefferson; Adriana D. Kugler; Loretta J. Mester; and
Christopher J. Waller.
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Attachment
For media inquiries, please email media@frb.gov or call 202-452-2955.

For release at 2:00 p.m. EDT March 20, 2024
Decisions Regarding Monetary Policy Implementation

The Federal Reserve has made the following decisions to implement the monetary policy stance
announced by the Federal Open Market Committee in its statement on March 20, 2024:
• The Board of Governors of the Federal Reserve System voted unanimously to maintain the
interest rate paid on reserve balances at 5.4 percent, effective March 21, 2024.
• As part of its policy decision, the Federal Open Market Committee voted to direct the Open
Market Desk at the Federal Reserve Bank of New York, until instructed otherwise, to
execute transactions in the System Open Market Account in accordance with the following
domestic policy directive:
"Effective March 21, 2024, the Federal Open Market Committee directs the Desk to:
o Undertake open market operations as necessary to maintain the federal funds rate
in a target range of 5-1/4 to 5-1/2 percent.
o Conduct standing overnight repurchase agreement operations with a minimum bid
rate of 5.5 percent and with an aggregate operation limit of $500 billion.
o Conduct standing overnight reverse repurchase agreement operations at an
offering rate of 5.3 percent and with a per-counterparty limit of $160 billion per
day.
o Roll over at auction the amount of principal payments from the Federal Reserve's
holdings of Treasury securities maturing in each calendar month that exceeds a
cap of $60 billion per month. Redeem Treasury coupon securities up to this
monthly cap and Treasury bills to the extent that coupon principal payments are
less than the monthly cap.
o Reinvest into agency mortgage-backed securities (MBS) the amount of principal
payments from the Federal Reserve's holdings of agency debt and agency MBS
received in each calendar month that exceeds a cap of $35 billion per month.
o Allow modest deviations from stated amounts for reinvestments, if needed for
operational reasons.
o Engage in dollar roll and coupon swap transactions as necessary to facilitate
settlement of the Federal Reserve's agency MBS transactions."
• In a related action, the Board of Governors of the Federal Reserve System voted
unanimously to approve the establishment of the primary credit rate at the existing level
of 5.5 percent.
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This information will be updated as appropriate to reflect decisions of the Federal Open Market
Committee or the Board of Governors regarding details of the Federal Reserve's operational tools
and approach used to implement monetary policy.
More information regarding open market operations and reinvestments may be found on the
Federal Reserve Bank of New York's website.

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For release at 2:00 p.m.

EDT March 20, 2024

over the past year but remains elevated.

Committee remains highly attentive to inflation risks.

The Committee is strongly committed to returning inflation to its 2 percent objective.

For media inquiries, please email media@frb.gov or call 202-452-2955.

Decisions Regarding Monetary Policy Implementation

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