Fed’s Powell: unemployment rate remained low in Feb

The market's knee-jerk reaction to the FOMC announcements was to sell the dollar on the basis that the dot plot indicated just three hikes in 2018 and not four for which some of the market had been long for. 

Key notes:

Fed’s Powell said that unemployment rate remained low in Feb and that gradual hikes should continue to serve the economy well.

More from his initail statement ahead of question:

• Fiscal policy has become more stimulative.
• Fundamentals underpinning demand remain solid.
• We expect the job market will remain strong.
• Unemployment rate remained low in Feb.
• Overall financial conditions remain accommodative.
• The shortfall of inflation reflects some unusual price declines from last year.
• Inflation may be above 2% at times.
• Inflation should move up in coming months.
• Inflation below 2% reflects unusual price drops last year.
• We try to prevent persistent deviations from infl goal.
• Fed’s Powell: fiscal policy has become more stimulative;
• - fundamentals underpinning demand remain solid;
• - we expect the job market will remain strong;
• - unemployment rate remained low in Feb;
• - fiscal policy has become more stimulative;
• - fundamentals underpinning demand remain solid;
• - we expect the job market will remain strong;
• - unemployment rate remained low in Feb.

Live video:

About the FOMC:

The press conference is about an hour long and has 2 parts - first a prepared statement is read, then the conference is open to press questions. The questions often lead to unscripted answers that create heavy market volatility.