Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is delivering his remarks on the monetary policy outlook, with key quotes (via Reuters) found below.
- “Modestly” lower path of Federal funds rate should support economy, keep Fed near goals.
- Negative changes have not fundamentally altered the outlook.
- Officials now expect two rate increases over next year, down from three.
- Most of his Fed colleagues expect economy to perform well in coming year.
FOMC raises the target for fed funds rate by 25bp to 2.25% – 2.5%.
Following its 2-day meeting, the Federal Open Market Committee announced that it would hike the benchmark interest rate by 25 basis points to the target range of 2.25% – 2.5% in a widely expected decision.
EUR/USD breaks below 1.1400 as Fed raises rates.
The EUR/USD pair moved to the downside after the Federal Reserve delivered a “dovish” rate hike. The pair was trading around 1.1430 and dropped quickly below 1.1400 following the release of the statement and the updated projections. It bottomed at 1.1380, approaching Asian session lows.
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.