March 20, 2019
Jerome H. Powell
March 20, 2019 FOMC Press Conference
- The chair said the U.S. economy is in a good place and that the current policy stance is appropriate.
- The chair said the federal funds rate is in the broad range of estimates of neutral, the rate that tends neither to stimulate nor to restrain the economy.
- The chair said the FOMC intends to slow the runoff of its asset holdings starting in May and to cease runoff entirely in September of this year.
- The chair said the balance sheet plan is not a form of monetary tightening, as the interest rate tool remains the principal tool of monetary policy.
- The chair said the global economy was a tailwind for the U.S. in 2017 but has since slowed, with the European economy slowing substantially and the Chinese economy also slowing, though less.
From the opening statement
Press conference
CHAIR POWELL. Good afternoon, everyone, and welcome. I will begin with an overview of economic conditions and an explanation of the decisions the Committee made at today’s meeting.
My colleagues and I have one overarching goal: to sustain the economic expansion, with a strong job market and stable prices, for the benefit of the American people. The U.S. economy is in a good place, and we will continue to use our monetary policy tools to help keep it there. The jobs market is strong, showing healthier wage gains and prompting many people to join or remain in the workforce. The unemployment rate is near historic lows, and inflation remains near our 2 percent goal. We continue to expect that the American economy will grow at a solid pace in 2019, although likely slower than the very strong pace of 2018. We believe that our current policy stance is appropriate.
Since last year, however, we have noted some developments at home and around the world that bear close attention. Given the overall favorable conditions in our economy, my colleagues and I will be patient in assessing what, if any, changes in the stance of policy may be needed. Let me explain in more detail how incoming data warrant our current stance and a wait-and-see approach to changes.