Powell speech: Fed has limited tools to address many facets of economic inequality

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.

Key quotes

"Relative stagnation of income for low-income workers and lower mobility holds back economy but Fed doesn't have tools to address them."

"Fed has limited tools to address many facets of economic inequality, cannot target specific groups."

"Those issues are really for elected officials but they are holding back productive capacity of the economy."

"Prosperity should be broadly spread in the longer run for there to be the highest potential economic output."

"There has been great progress in market function."

"Asset purchases totalling $120 billion a month provide accommodation and can be adjusted as appropriate."

"Asset purchases are now providing accommodative financial conditions and will continue to monitor developments and adjust as needed."

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.