Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is now responding to questions from the press, with key quotes (via Reuters) found below.
Fed does not consider political factors in deciding policy.
Hard to be confident that rates need to be above neutral level in 2020, 2021.
Forecasts on inflation based on perception that it’s not responding as much to less slack in labour market.
Fed to carefully watch in case inflation reacts more strongly or weakly than predicted.
FOMC’s updated economic projections point to 3 rate hikes in 2019.
The Fed’s latest projections show the economy continuing at a steady pace through 2019, with gross domestic product growth seen at 2.5 percent next year before it slows to 2.0 percent in 2020 and to 1.8 percent in 2021, as the impact of the recent tax cuts and government spending fade.
FOMC raises the target for Fed funds rate by 25bp to 2.00-2.25%.
Following its 2-day meeting, the Federal Open Market Committee announced that it would hike the benchmark interest rate by 25 basis points to the target range of 2% – 2.25% in a widely expected decision.
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.