The Policy Response As the magnitude and persistence of the increase in inflation became increasingly clear over the second half of last year, and as the job market recovery accelerated beyond See the minutes of the June 2021 FOMC meeting, which are available on the Board’s website at https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm. 3  -6expectations, the FOMC pivoted to progressively less accommodative monetary policy.
In June, the median FOMC participant projected that the federal funds rate would remain at its effective lower bound through the end of 2022, and as the news came in, the projected policy paths shifted higher (figure 5).