March 21, 2018
Jerome H. Powell
March 21, 2018 FOMC Press Conference
- Powell said the median projection for the federal funds rate is 2.1 percent at the end of 2018, 2.9 percent at the end of 2019, and 3.4 percent at the end of 2020.
- Powell stated that the median projection for real GDP growth is 2.7 percent in 2018, 2.4 percent in 2019, and 2 percent in 2020.
- Powell said the median projection for the unemployment rate is 3.8 percent in the fourth quarter of 2018 and 3.6 percent over the next two years.
- Powell said the balance sheet reduction program, which began in October, is proceeding smoothly and that the FOMC does not intend to alter it unless there is a very significant and unexpected weakening in the outlook.
- Powell said that a number of FOMC participants brought up the issue of tariffs, and that trade policy has become a concern for business leaders going forward.
From the opening statement
Press conference
CHAIRMAN POWELL. Good afternoon. I have a brief statement, and then I’ll be happy to respond to your questions.
The job market remains strong, the economy continues to expand, and inflation appears to be moving toward the FOMC’s 2 percent longer-run goal. As you already know, we decided today to raise the target rate for the federal funds rate by ¼ percentage point, bringing it to 1½ to
1 1¾ percent. This decision marks another step in the ongoing process of gradually scaling back monetary policy accommodation—a process that has been under way for several years now.