Full comparison of changes in the April meeting statement of the Federal Reserve

Compared to the statement from the March meeting, there were two major changes in the Federal Open Market Committee (FOMC) meeting statement released by the Federal Reserve on Wednesday this week.

One of them is the addition of changes to the balance sheet reduction plan, with the monthly cap on the reduction of US Treasury bonds lowered by more than half to $25 billion. The other major change is the addition of wording emphasizing the recent lack of progress in inflation decline.

The full translation of the statement is as follows. The black font is the same part as the FOMC meeting statement in March 2024, the black font with annotations added by Wall Street News for supplementary explanations, the red font is the new part added in April 2024, and the blue font in parentheses is the wording deleted in the March statement (please indicate the source when reprinting):

Recent indicators show that economic activity continues (to be) expanding steadily. Job growth remains strong, and the unemployment rate remains low. Inflation has slowed over the past year but remains elevated. In recent months, there has been a lack of further progress in achieving the Committee's (note: FOMC Committee) 2% inflation target.

The Committee (note: FOMC Committee) aims for maximum employment and a 2% inflation rate over the long term. The Committee judges that over the past year, the risks to achieving the employment and inflation goals are moving towards a better balance. The economic outlook is uncertain, and the Committee remains highly focused on inflation risks.

To support its (note: FOMC Committee) goals, the Committee has decided to maintain the target range for the federal funds rate at 5.25% to 5.50%. When considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess future data, evolving outlooks, and risk balances. The Committee expects to be confident in moving towards 2% inflation before considering lowering the target range. In addition, (as previously announced in its plan,) the Committee will continue to reduce its holdings of US Treasury bonds, agency debt, and agency mortgage-backed securities. Starting in June, by lowering the monthly cap on the redemption of US Treasury bonds from $60 billion to $25 billion, the (FOMC) Committee will slow the pace of reducing its bond holdings. The Committee will keep the monthly cap on the redemption of agency debt and agency mortgage-backed securities unchanged at $35 billion and will reinvest any principal exceeding this limit into US Treasury bonds. The Committee is firmly committed to restoring the inflation rate to the 2% target.

When assessing the appropriate monetary policy stance, the Committee will continue to monitor the latest information on the economic outlook. If risks arise that could impede the achievement of the goals, the Committee will be prepared to adjust the monetary policy stance as appropriate. The Committee's assessment will be based on a wide range of information, including labor market conditions, inflation pressures and expectations, and data on changes in financial and international conditions.

Voters in favor of this monetary policy include: FOMC Chairman Jerome H. Powell (note: Federal Reserve Chairman); Vice Chairman John C. Williams (note: President of the New York Fed); Thomas I. Barkin (note: President of the Richmond Fed); Michael S. Barr (Note: Federal Reserve Board Governor); Raphael W. Bostic (Note: President of the Federal Reserve Bank of Atlanta); Michelle W. Bowman (Note: Federal Reserve Board Governor); Lisa D. Cook (Note: Federal Reserve Board Governor); Mary C. Daly (Note: President of the Federal Reserve Bank of San Francisco); Philip N. Jefferson (Note: Federal Reserve Board Governor); Adriana D. Kugler (Note: Federal Reserve Board Governor); Loretta J. Mester (Note: President of the Federal Reserve Bank of Cleveland); Christopher J. Waller (Note: Federal Reserve Board Governor)