Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is now responding to questions from the press, with key quotes found below.
- We don't have the tools to hit the 2% inflation target, we expect the rate to move around that level.
- The decision you see today is another sign of economic strength.
- Wages have been gradually moving up.
- Low productivity could be a reason behind the slow increase in wages.
- Labor shortages to eventually raise wages.
FOMC raises the target for Fed funds rate by 25bp to 1.75-2.00%.
Following its 2-day meeting, the Federal Open Market Committee announced that it would hike the benchmark interest rate by 25 basis points to the target range of 1.75% - 2% in a widely expected decision.
Gold turns negative as Fed signals two more rate hikes.
The US Dollar gained momentum across the board after the release of the FOMC statement. Gold dropped from $1,297/oz to $1,293.50 approaching daily lows. The move lower was boosted by a stronger greenback.
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.
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