December 13, 2023
Jerome H. Powell
December 13, 2023 FOMC Press Conference
- The chair said the FOMC has raised the policy rate by 5¼ percentage points since early last year and reduced securities holdings by more than $1 trillion.
- The chair said the median SEP projection for the federal funds rate is 4.6 percent at the end of 2024, 3.6 percent at the end of 2025, and 2.9 percent at the end of 2026.
- The chair said the median SEP projection for GDP growth is 1.4 percent next year, and the median unemployment rate projection rises to 4.1 percent at the end of next year.
- The chair said total PCE prices rose 2.6 percent over the 12 months ending in November, and core PCE prices rose 3.1 percent.
- The chair said the addition of the word "any" in the statement acknowledges that the policy rate is likely at or near its peak for this tightening cycle, but participants did not want to take further hikes off the table.
From the opening statement
Press conference
CHAIR POWELL. Good afternoon. My colleagues and I remain squarely focused on our dual mandate to promote maximum employment and stable prices for the American people.
As we approach the end of the year, it’s natural to look back on the progress that has been made toward our dual-mandate objectives. Inflation has eased from its highs, and this has come without a significant increase in unemployment. That’s very good news. But inflation is still too high, ongoing progress in bringing it down is not assured, and the path forward is uncertain. As we look ahead to next year, I want to assure the American people that we’re fully committed to returning inflation to our 2 percent goal. Restoring price stability is essential to achieve a sustained period of strong labor market conditions that benefit all.
Since early last year, the FOMC has significantly tightened the stance of monetary policy. We’ve raised our policy interest rate by 5¼ percentage points and have continued to reduce our securities holdings at a brisk pace. Our actions have moved our policy rate well into restrictive territory, meaning that tight policy is putting downward pressure on economic activity and inflation, and the full effects of our tightening likely have not yet been felt.