June 19, 2019
Statement·Presser·Minutes·Policy
Jerome H. Powell
June 19, 2019 FOMC Press Conference
- The chair said that eight FOMC participants wrote down rate cuts in their projections, and a number of others saw the case for a cut as strengthened.
- The chair stated that the FOMC did not consider a rate cut at this meeting, preferring to wait for more information on whether risks would persist.
- The chair said that the risk of waiting too long to cut rates was not prominent at the time, given the recent nature of some developments.
- The chair noted that the drop in market-based inflation expectations and the lower FOMC inflation forecast for 2019 were reasons the case for accommodation had strengthened.
- The chair said that the FOMC had not yet engaged with the question of whether a future rate cut would be 25 or 50 basis points, as it would depend on incoming data.
From the opening statement
Press conference
CHAIR POWELL. Good afternoon, and welcome. 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.
At the FOMC meeting that concluded today, we maintained our policy interest rate but made some significant changes to our statement. Since the beginning of the year, we have judged that our current policy stance was broadly appropriate and that we should be patient in assessing the need for any changes. In light of increased uncertainties and muted inflation pressures, we now emphasize that the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion with a strong labor market and inflation near its 2 percent objective.
I’d like to step back and review how the changing economic and financial picture brings us to today’s decision. So far this year, the economy has performed reasonably well, with solid fundamentals supporting continued growth and strong employment. Inflation has been running somewhat below our objective, but we have expected it to pick up, supported by solid growth and a strong job market. Along with this favorable picture, we have been mindful of some ongoing crosscurrents, including trade developments and concerns about global growth. At the time of our last FOMC meeting, which ended on May 1, there was tentative evidence that these crosscurrents were moderating. The latest data from China and Europe were encouraging, and there were reports of progress in trade negotiations with China. Our continued patient stance seemed appropriate, and the Committee saw no strong case for adjusting our policy rate.