November 2, 2011
BBBen S. BernankeNovember 2, 2011 FOMC Press Conference
- The FOMC participants' longer-run projections for real GDP growth had a central tendency of 2.4 to 2.7 percent, and for the unemployment rate, 5.2 to 6.0 percent.
- The central tendency of the longer-run inflation projections, measured by the PCE price index, was 1.7 to 2.0 percent, which the chair described as the "mandate-consistent" rate of 2 percent or a bit less.
- The chair said the unemployment rate was expected to decline only gradually, with a central tendency of 8.5 to 8.7 percent by the fourth quarter of 2012 and 6.8 to 7.7 percent by the fourth quarter of 2014.
- The chair stated that the Fed was not contemplating a radical change in its policy framework, such as nominal GDP targeting, though it had discussed nominal GDP as an information variable.
- The chair said that purchases of mortgage-backed securities were a "viable option" that the Fed would consider if conditions were appropriate, and that the Fed ultimately wanted to return its portfolio to Treasuries only.
From the opening statement
Press conference
CHAIRMAN BERNANKE. Good afternoon, everybody. Welcome.
In my opening remarks, I will briefly review today’s policy decision of the Federal Open Market Committee, and I will place that decision in the context of our economic projections and our policy strategy. I will then be glad to take your questions.
As indicated in its statement, the Committee decided today to maintain the policies that were initiated at previous meetings. In particular, the Committee is keeping the target range for the federal funds rate at 0 to ¼ percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.