The Federal Reserve Board submitted its Monetary Policy Report to Congress on June 17, 2022. The report outlined the Committee's commitment to promoting maximum employment, stable prices, and moderate long-term interest rates. The Committee aims to provide clarity in its decision-making process to facilitate informed decision-making by households and businesses. The Committee uses the federal funds rate to adjust the stance of monetary policy in response to economic and financial disturbances. The report stated that the level of the federal funds rate consistent with maximum employment and price stability over the longer run has declined relative to its historical average, which means that the federal funds rate is likely to be constrained by its effective lower bound.
