October 30, 2019
Jerome H. Powell
October 30, 2019 FOMC Press Conference
- The Fed has cut interest rates three times this year, with today's reduction bringing the target range to 1½ to 1¾ percent.
- The chair described the current stance of monetary policy as "likely to remain appropriate" as long as incoming data broadly align with the outlook for moderate growth, a strong labor market, and inflation near 2 percent.
- Risks to the outlook have moved in a positive direction due to a potential phase-one trade agreement with China and a reduced likelihood of a no-deal Brexit.
- The Fed's Treasury bill purchases and temporary open market operations are technical measures to maintain ample reserves, not a change in policy stance or quantitative easing.
- The policy framework review is ongoing and expected to conclude around the middle of next year, focusing on ways to make the symmetric 2 percent inflation objective more credible.
From the opening statement
Press conference
CHAIR POWELL. Good afternoon, and welcome. My colleagues at the Federal Reserve and I are dedicated to serving the American people. We do this by steadfastly pursuing the goals that Congress has given us: maximum employment and stable prices. We ’re committed to making the best decisions we can based on facts and objective analysis.
Today we decided to lower the interest rates for the third time this year. We took this step to help keep the U.S. economy strong in the face of global developments and to provide some insurance against ongoing risks. As I will explain shortly, the policy adjustments we have made since last year are providing—and will continue to provide—meaningful support to the economy. We believe that monetary policy is in a good place.
The U.S. economy is in its 11th year of expansion, and the baseline outlook remains favorable. The overall economy is growing at a moderate rate. Household spending continues to be strong, supported by a healthy job market, rising incomes, and solid consumer confidence. In contrast, business investment and exports remain weak, and manufacturing output has declined over the past year. Sluggish growth abroad and trade developments have been weighing on those sectors. Looking ahead, we continue to expect the economy to expand at a moderate rate, reflecting solid household spending and supportive financial conditions.