April 27, 2011
BBBen S. BernankeApril 27, 2011 FOMC Press Conference
- The chair said the FOMC's longer-run projections for output growth have a central tendency of 2.5 to 2.8 percent, unchanged from January.
- The chair said the central tendency of the longer-run projection for inflation, as measured by the PCE price index, is 1.7 to 2.0 percent, which can be interpreted as the mandate-consistent inflation rate.
- The chair said participants' projections for output growth have a central tendency of 3.1 to 3.3 percent for 2011, rising to 3.5 to 4.2 percent in 2012 and about the same in 2013.
- The chair said the unemployment rate is projected to edge down to 8.4 to 8.7 percent in the fourth quarter of 2011 and decline gradually to 6.8 to 7.2 percent in the fourth quarter of 2013.
- The chair said the "extended period" language is conditioned on resource slack, subdued inflation, and stable inflation expectations, and that it suggests a couple of meetings would probably pass before action.
From the opening statement
Press conference
CHAIRMAN BERNANKE. Good afternoon. Welcome.
In my opening remarks, I’d like to briefly first review today’s policy decision. I’ll then turn next to the Federal Open Market Committee’s quarterly economic projections also being released today, and I’ll place today’s policy decision in the context of the Committee’s projections and the Federal Reserve’s statutory mandate to foster maximum employment and price stability. I’ll then be glad to take your questions. Throughout today’s briefing, my goal will be to reflect the consensus of the Committee, while taking note of the diversity of views as appropriate. Of course, my remarks and interpretations are my own responsibility.
In its policy statement released earlier today, the Committee announced, first, that it is maintaining its existing policy of reinvesting principal payments from its security holdings, and, second, that it will complete its planned purchases of $600 billion of longer-term Treasury securities by the end of the current quarter. Of course, going forward, the Committee will regularly review the size and composition of it s securities holdings in light of incoming information and is prepared to adjust those holdings as needed to meet the Federal Reserve’s mandate.