Powell speech: Inflation overshoots not expected to be large or permanent

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

"The whole Committee is supportive of the statement of longer-run goals and everyone sees need to address changes in the longer run economy."

"Fed is the first major central bank to adopt this framework and there is no cookbook."

"We understand we have to support this framework with our actions to earn credibility."

"There are different ideas of how to do this but that is how it is when you have diverse views."

"Further support to real estate market may require further action from Congress."

"It is less intuitive for the public to understand that inflation can be too low."

"Fed wants inflation to average 2% so the public will expect that and that will be built into interest rates."

"We're not looking to have high inflation, just for it to average 2%."

"These won't be large overshoots and they won't be permanent."

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.