Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is now responding to questions from the press, with key quotes, via Reuters, found below.
- Public discussion needs to come back to federal debt sustainability.
- Balance sheet will be around 17 pct of GDP around end 2019 vs 25 pct at peak.
- Fed has not convincingly achieved 2 pct inflation mandate in symmetrical way.
- Not meeting inflation target one of reasons Fed is being patient.
FOMC keeps benchmark interest rate unchanged at 2.25% – 2.5% range, sees no rate hikes this year.
Following its 2-day meeting, the Federal Open Market Committee announced that it left the benchmark interest rate unchanged at the target range of 2% – 2.25% in a widely expected decision.
USD/JPY tumbles below 111.00 after FOMC meeting.
The USD/JPY pair lost more than 50 pips in the minutes after the Federal Reserve released its statement, the summary of economic projections and an announcement regarding the balance sheet.
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.