June 22, 2011
Statement·Presser·Minutes·Policy
BBBen S. BernankeJune 22, 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 and for the unemployment rate 5.2 to 5.6 percent, unchanged from April.
- The chair said the central tendency of participants' inflation projections is 2.3 to 2.5 percent for 2011, declining to 1.5 to 2.0 percent in both 2012 and 2013.
- The chair said the unemployment rate has risen by 0.3 percentage points since March and new claims for unemployment insurance have moved somewhat higher.
- The chair said the Fed has not made any commitment about the time frame for allowing its securities portfolio to run off rather than reinvesting.
- The chair said the banks the Fed regulates are not significantly exposed directly to peripheral European countries, but have significant exposures to European banks in nonperipheral countries, and stress tests showed the effects of a Greek default on their capital would be very small.
From the opening statement
Press conference
CHAIRMAN BERNANKE. Good afternoon and welcome.
In my opening remarks today, I’ll briefly review today’s policy decision. And I’ll place the decision in the context of our economic projections and our policy strategy. 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.
As indicated in the policy statement released earlier this afternoon, the Committee decided today to keep the target range for the federal funds rate at 0 to ¼ percent. The Committee continues to anticipate that economic conditions—including low rates of resource utilization and a subdued outlook for inflation in the medium run—are likely to warrant exceptionally low levels for the federal funds rate for an extended period. The Committee’s planned purchases of $600 billion of longer-term Treasury securities will be completed by the end of this month, and the Committee will continue to reinvest principal payments from its securities holdings going forward.