December 19, 2018
Jerome H. Powell
December 19, 2018 FOMC Press Conference
- The chair said the FOMC had lowered its median projection for 2019 rate increases from about three to two.
- The chair said the federal funds rate target range was now at the lower end of the range of estimates of the longer-run normal rate.
- The chair said the balance sheet runoff was on "automatic pilot" and he did not see the FOMC changing that approach.
- The chair said political considerations had played no role in the FOMC's discussions or decisions on monetary policy.
- The chair said the FOMC had not declared victory on achieving inflation symmetrically around 2 percent.
From the opening statement
Press conference
CHAIRMAN POWELL. Good afternoon, everyone. Thanks very much for being here today. [Cough] Pardon me.
Over the past year the economy has been growing at a strong pace, the unemployment rate has been near record lows, and inflation has been low and stable. All of those things remain true today. Since the September meeting of the FOMC, however, some crosscurrents have emerged. I’ll explain how my colleagues and I are incorporating those crosscurrents into our judgments about the outlook and the appropriate course of policy.
Since September, the U.S. economy has continued to perform well, roughly in line with our expectations. The economy has been adding jobs at a pace that will continue bringing the unemployment rate down over time. Wages have moved up for workers across a wide range of occupations—a welcome development. Inflation has remained low and stable and is ending the year a bit more subdued than most had expected. Although some American families and communities continue to struggle and some longer-term economic problems remain, the strong economy is benefiting many Americans.