Following the Federal Open Market Committee’s (FOMC) decision to keep the policy rate unchanged within the target range of 0-0.25%, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is delivering his comments on the policy outlook.
Key quotes
“Financial stability is not about a particular market.”
“By some measures, some asset valuations are elevated compared to history.”
“Asset valuations are by some measures elevated compared to history.”
“Not concerned about household or business debt levels.”
“A high priority will be to go back and strengthen short-term funding markets and non-bank financials.”
“Would not read too much into the dot plot.”
“Summary of Economic Projections doesn’t include all the things that go into max employment.”
“For liftoff, we need max employment, inflation at 2% not on a transient basis and inflation on track to exceed 2%.”
“We are committed to giving the economy the support that it needs to achieve the Fed’s goals.”
“It’s absolutely essential to maintain financial stability and carefully monitor it.”
“Over the previous long expansion rates were at 0 for 7 years and never got above 2.4% and we never had asset bubbles.”
“Connection between low rates and financial instability is not as tight as people think.”
“We do monitor financial conditions more closely now than before financial crisis.”
About Jerome Powell (via Federalreserve.gov)
Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System’s principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028.
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