Federal Reserve Chairman Jerome Powell holds a news conference to explain why they have decided to leave the policy rate, federal funds rate, unchanged at the range of 5.25-5.5% at September FOMC meeting and responds to questions.
Key takeaways
"Reducing inflation is likely to require a period of below trend growth, some softening of labor conditions."
"The fact that we decided to keep policy rate .where it is doesn't mean we have decided we have, or have not, reached stance of policy we are seeking."
"Majority of policymakers believe it is more likely than not another rate hike will be appropriate."
"We are not making a decision about if rates are sufficiently restrictive."
"We want to see convincing evidence we have reached appropriate level."
"Need to see more progress before we will be ready to reach conclusion we are sufficiently restrictive."
"Real interest rates are meaningfully positive."
"Would not want to say Summary of Economic Projections (SEP) is a plan."
"SEP is what people think will be appropriate as of now to achieve 2% inflation."
"Proposal at the meeting was to maintain the current policy stance, unanimous support for that."
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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