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
“I do think policy is restrictive and is weighing on demand.”
“You can see that with the labor market.”
“Saw evidence of that today in the JOLTS report.”
“Quits and hiring rates have normalized.”
“We believe over time policy is sufficiently restrictive to bring inflation back down to 2%.”
“The data will show if that’s so.”
“Unlikely that next policy rate move would be a hike.”
“Policy focus is on how long to keep policy restrictive.”
“To hike, we’d need to see evidence policy is not sufficiently restrictive — that’s not what we see.”
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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