Powell speech: We remain open to increasing size of asset purchases if appropriate

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

“State and local governments employ a lot of people, monitoring the mixed picture.”

“Asset purchase program is providing a large amount of support to the economy.”

“We have the ability to buy more bonds, or buy longer-term bonds and we may use it.”

“Big effects for monetary policy are months and months into the future.”

“We remain open to increasing size of asset purchases if that turns out to be appropriate.”

“Current policy stance is appropriate.”

“Guidance on purchases today will provide support over time.”

“We don’t think economy suffers from lack of accommodative conditions, we think it suffers from the virus.”

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.