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Jerome Powell, Chair of the Board of Governors of the Federal Reserve System,  is now responding to questions from the press, with key quotes, found below.

“Inflation will return to 2% over time and then will be symmetric around our target”

“We don’t see a strong case for moving policy in either direction.”

“Decision on IOER doesn’t reflect a shift in the monetary policy stance.”

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FOMC keeps the target for fed funds rate  unchanged in 2.25% – 2.5% range.

Following its 2-day meeting, the Federal Open Market Committee announced that it kept the benchmark interest rate unchanged at the target range of 2.25% – 2.5% in a widely expected decision.

USD/CAD a touch heavier  despite benign FOMC, sticking to the script.

Markets were already positioned for a benign outcome and had been exiting dollar longs solely on the basis of recent data that aligns with the dovish stars. A rate cut is expected from the Fed in due course, but the key takeaway from today’s statement is one of patience again –  Fed is to stay patient on rates as the economy is solid and inflation is muted.