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.
“There’s nothing in framework that interferes with our ability to pursue our goals.”
“We are not facing a situation where we are behind the curve.”
“The question we face with this inflation is nothing to do with the framework.”
“The question is, how do you separate broad upward price pressures from idiosyncratic factors.”
“It’s a question you would face under any framework.”
“We do think these are temporary factors, they will wane, though uncertain about the timing.”
“We will taper when we feel the economy has reached substantial further progress.”
“We will do what we can to avoid a market reaction.”
“Economy is recovering from a deep hole.”
“Turns out it is a lot easier to create demand than to bring supply back up to snuff.”
“We are going to watch carefully to be sure our understanding of inflation is right.”
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.