March 20, 2013
BBBen S. BernankeMarch 20, 2013 FOMC Press Conference
- The chair said the 19 FOMC participants' projections had a central tendency for 2013 economic growth of 2.3 to 2.8 percent, rising to 2.9 to 3.7 percent in 2015.
- The chair said the central tendency of participants' unemployment rate projections was 7.3 to 7.5 percent for the fourth quarter of 2013, declining to 6.0 to 6.5 percent by the final quarter of 2015.
- The chair said 14 of the 19 FOMC participants saw the first increase in the federal funds rate target as occurring in 2015 or 2016.
- The chair said the FOMC could vary the monthly pace of asset purchases as progress was made toward its objectives, and that no adjustment was warranted at this meeting.
- The chair said the recent increases in gasoline prices appeared to be due mostly to passing factors such as refinery shutdowns for maintenance.
From the opening statement
Press conference
CHAIRMAN BERNANKE. Good afternoon.
The Federal Open Market Committee concluded a two-day meeting earlier today. As always, my colleagues and I review ed recent economic and financial developments and discussed the economic outlook. The data since our January meeting have been generally consistent with our expectation that the fourth-quarter pause in the recovery would prove temporary and that moderate economic growth would resume. Spending by households and businesses has continued to expand, and the housing sector has seen further gains. The jobs market has also shown signs of improvement over the past six months or so: Private payrolls are growing more quickly, total hours of work have increased, the rate of filings of new claims for unemployment insurance has fallen, and the unemployment rate has continued to tick down. However, at 7.7 percent, the unemployment rate remains elevated. The Committee also remains concerned that restrictive fiscal policies may slow economic growth and job creation in coming months.
We continue to monitor the recent increases in gasoline prices, which appear to be due mostly to passing factors such as refinery shutdowns for maintenance. Apart from temporary variations in energy prices, inflation is running somewhat below the Committee’s longer-run objective of 2 percent. Importantly, longer -term inflation expectations remain stable. Overall, still-high unemployment, in combination with relatively low inflation, underscores the need for policies that will support progress towards maximum employment in a context of price stability.