September 26, 2018
Jerome H. Powell
September 26, 2018 FOMC Press Conference
- The chair said the Fed does not consider political factors in its decisions, responding to a question about President Trump's criticism of rate hikes.
- The chair said the Fed's gradual rate increases help limit the "long and variable lags" problem by allowing observation of how the economy absorbs hikes.
- The chair said the staff judged overall financial stability vulnerabilities to be moderate, with some asset prices in the upper range of historical ranges and leverage in nonfinancial corporates.
- The chair said the Fed has heard a "rising chorus of concerns" from businesses about supply chain disruptions and cost increases due to trade tensions, though aggregate effects are not yet measurable.
- The chair said labor force participation has surprised on the upside, with a sideways trend since late 2013 despite aging, suggesting more labor supply than prior trends indicated.
From the opening statement
Press conference
NICK TIMIRAOS. Thank you. Nick Timiraos, the Wall Street Journal. Chair Powell, given the lags of monetary policy, I want to know how you think about ending the tightening cycle? How will you know when to stop? And do you need to keep going until something in the economy breaks?