As part of its policy decision, the Federal Open Market Committee voted to authorize and 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 July 28, 2022, the Federal Open Market Committee directs the Desk to:
Undertake open market operations as necessary to maintain the federal funds rate in a target range of 2-1/4 to 2-1/2 percent.
Conduct overnight repurchase agreement operations with a minimum bid rate of 2.5 percent and with an aggregate operation limit of $500 billion; the aggregate operation limit can be temporarily
increased at the discretion of the Chair.
Conduct overnight reverse repurchase agreement operations at an offering rate of 2.3 percent and with a per-counterparty limit of $160 billion per day; the per-counterparty limit can be temporarily
increased at the discretion of the Chair.
Per the US Bureau of Economic Analysis personal income increased $133.5 billion (0.6 percent) in June, according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased $120.4 billion (0.7 percent) and personal consumption expenditures (PCE) increased $181.1 billion (1.1 percent).
The PCE price index increased 1.0 percent. Excluding food and energy, the PCE price index increased 0.6 percent. Real DPI decreased 0.3 percent in June and real PCE increased 0.1 percent; goods increased 0.1 percent and services increased 0.1 percent.
The increase in current-dollar personal income in June primarily reflected increases in compensation (led by private wages and salaries) and proprietors’ income (mainly nonfarm). Other current transfer receipts increased $12.9 billion in June, reflecting a legal settlement from corporate business to persons. The national income and product accounts record these settlements on an accrual basis in the month when the settlement is reached, regardless of when they are recorded on companies’ financial statements.
Real gross domestic product (GDP) decreased at an annual rate of 0.9 percent in the second quarter of 2022, according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP decreased 1.6 percent.
The GDP estimate released today is based on source data that are incomplete or subject to further revision by the source agency. The “second” estimate for the second quarter, based on more complete data, will be released on August 25, 2022.
The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by increases in exports and personal consumption expenditures (PCE). Imports, which are a subtraction in the calculation of GDP, increased.
According to Eurostat data in the second quarter 2022, seasonally adjusted GDP increased by 0.7% in the euro area and by 0.6% in the EU, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union. In the first quarter of 2022, GDP had grown by 0.5% in the euro area and 0.6% in the EU.
These preliminary GDP flash estimates are based on data sources that are incomplete and subject to further revisions.
Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 4.0% both in the euro area and in the EU in the second quarter of 2022, after +5.4% in the euro area and +5.5% in the EU in the previous quarter.
