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
“There very likely will be a step up inflation in March and April but it will wear off quickly.”
“As the economy reopens people will start spending more; would not be surprising that there will be bottlenecks; could mean relatively modest increases in inflation.”
“The supply side of the US is very dynamic.”
“Having expectations anchored at 2% is the key to it all.”
“Having inflation anchored at 2% gives us the ability to push hard when the economy is really weak.”
“Would expect to see supply bottlenecks emerge and clear over time.”
“Really strong economic data should be coming.”
“Even with supply bottlenecks, companies may choose not to raise prices.”
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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