Federal Reserve Chairman Jerome Powell explains the decision to leave the policy rate, federal funds rate, unchanged at the range of 5.25%-5.5% and responds to questions in the post-meeting press conference.
Key quotes
"I like to look at 3 and 6 month series on payrolls report given differences in establishment and household survey."
"Overall picture is one of strong and gradually cooling labor market."
"It has given us an ambiguous result, but fact remains labor market is strong."
"No longer the super heated labor market of a few years ago."
"The big thing that change rate path forecasts was inflation."
"We had a pause in progress in inflation in first quarter, the takeaway was that it will take longer to get to rate cuts."
"We have to let the data light the way."
"Today was a better inflation report than almost anyone expected."
"Long-run neutral rate of interest is theoretical."
"People are coming to the view that rates are less likely to go back down to pre-pandemic levels."
"We are making policy with the economy we have and distortions we have."
"Policy is restrictive."
"The question of whether it's restrictive enough will be answered over time."
"Evidence is pretty clear though that policy is currently restrictive and having impact we hoped for."
"We are prepared to adjust policy as appropriate."
