Powell speech: Will take some time to reach 2% inflation goal

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

“We have restored market functioning and fostered more accommodative financial conditions.”

“Current policy stance is appropriate but we have the flexibility to do more when appropriate.”

“Monetary policy is not the first line of defence to maintain financial stability.”

“Guidance from policymakers shows confidence in the ability to reach 2% inflation goal.”

“Expecting economy to recover quickly now but slack in the economy later is expected to put downward pressure on inflation.”

“It will take some time for the Fed to reach 2% goal with slack in the economy putting downward pressure on inflation.”

“Fed officials expect the rate of economic growth will be fast in the beginning and then slow down to a more normal pace.”

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.