June 19, 2013
Statement·Presser·Minutes·Policy
BBBen S. BernankeJune 19, 2013 FOMC Press Conference
- The chair said 14 of 19 FOMC participants expect the first federal funds rate increase to occur in 2015, and one expects it in 2016.
- The chair said the FOMC anticipates moderating the monthly pace of asset purchases later this year and ending purchases around midyear next year, if data align with forecasts.
- The chair said the unemployment rate would likely be around 7 percent when asset purchases end, a substantial improvement from the 8.1 percent rate when the program was announced.
- The chair said a strong majority of participants expect the FOMC will not sell agency mortgage-backed securities during policy normalization, though limited sales could be used in the longer run.
- The chair said the recent rise in longer-term interest rates was larger than can be explained by changes in the ultimate stock of asset purchases, citing other factors like economic optimism.
From the opening statement
Press conference
CHAIRMAN BERNANKE. Good afternoon.
The Federal Open Market Committee concluded a two-day meeting earlier today. Based on its review of recent economic and financial developments, the Committee sees the economy continuing to grow at a moderate pace, notwithstanding the strong headwinds created by current federal fiscal policies.
The labor market has continued to improve, with gains in private payroll employment averaging about 200,000 jobs per month over the past six months. Job gains, along with the strengthening housing market, have in turn contributed to increases in consumer confidence and supported household spending. However, at 7.6 percent, the unemployment rate remains elevated, as do rates of underemployment and long-term unemployment. Overall, the Committee believes the downside risks to the outlook for the economy and the labor market have diminished since the fall, but we will continue to evaluate economic conditions and risks as they evolve.