Federal Reserve Chairman Jerome Powell explains the decision to leave the policy rate, federal funds rate, unchanged at the range of 5.25-5.5% and responds to questions in the post-meeting press conference.
Key quotes
"Participants are encouraged to update SEP forecasts until mid-morning Wednesday."
"Some people did update their forecasts based on CPI and PPI data."
"We don't know if neutral rate has risen."
"Reason you wouldn't wait to 2% inflation to cut rates is it would be too late."
"You need to reduce restriction on economy well before 2%."
"Takes a while for policy to get into the economy."
"At some point you will run out of supply-side help, and then it gets harder, but it's uncertatin."
"We are not talking about altering the pace of QT."
"Balance sheet is working pretty much as expected."
"At a certain point reverse repo facility levels out and reserves will come down."
About Jerome Powell (via Federalreserve.gov)
"Jerome H. Powell first took office as Chair of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. He was reappointed to the office and sworn in for a second four-year term on May 23, 2022. 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."
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