May 1, 2019
Jerome H. Powell
May 1, 2019 FOMC Press Conference
- The chair said that job gains averaged 180,000 per month in the first quarter, well above the pace needed to absorb new entrants to the labor force.
- The chair said that core inflation ran at or very close to 2 percent from March through December of last year, and that the unexpected first-quarter decline may be due to transitory factors like portfolio management, service prices, and apparel prices.
- The chair said that risks from global growth, Brexit, and trade negotiations have moderated somewhat, citing improved data from China and Europe and reports of progress in U.S.-China trade talks.
- The chair said that the FOMC had a preliminary discussion about the longer-run maturity composition of the balance sheet, with plans to return to the question toward the end of the year, and that any decisions would be implemented with considerable advance notice.
- The chair said that financial stability vulnerabilities are moderate on balance, with some concerns about nonfinancial corporate debt, but that the financial system is resilient with high capital and liquidity.
From the opening statement
Press conference
CHAIR POWELL. Good afternoon, and welcome. At the FOMC meeting that concluded today, we reviewed economic and financial developments in the United States and around the world and decided to leave our policy interest rate unchanged.
My colleagues and I have one overarching goal: to use our monetary policy tools to sustain the economic expansion with a strong job market and stable prices for the benefit of the American people. Incoming data since our last meeting in March have been broadly in line with our expectations. Economic growth and job creation have both been a bit stronger than we anticipated, while inflation has been somewhat weaker. Overall, the economy continues on a healthy path, and the Committee believes that the current stance of policy is appropriate.
The Committee also believes that solid underlying fundamentals are supporting the economy, including accommodative financial conditions, high employment and job growth, rising wages, and strong consumer and business sentiment. Job gains rebounded in March after a weak reading in February and averaged 180,000 per month in the first quarter, well above the pace needed to absorb new entrants to the labor force. Although first-quarter GDP rose more than most forecasters had expected, growth in private consumption and business fixed investment slowed. Recent data suggest that these two components will bounce back, supporting our expectation of healthy GDP growth over the rest of the year.