Difference in projections reflect lower inflation than previously expected

Federal Reserve Chairman Jerome Powell explains the decision to leave the policy rate, federal funds rate, unchanged at the range of 5.25-5.5% and responds to questions in the post-meeting press conference.

Key quotes

“Today at Fed meeting, many people mentioned their rate forecasts.”

“There was a general expectation that rate cuts will be a topic of conversation going forward.”

“Little basis for thinking the economy is in recession now.”

“Always a probability there is a recession next year.”

“I have always felt there was a possibility economy could avert recession while inflation came down, and so far that’s what we are seeing.”

“Difference in projections reflect lower inflation than previously expected.”

“We are very conscious of real rates.”

“It’s very hard to know exactly how tight policy is at any given time.”

“Expectation would be that real rates are declining as we move forward.”

About Jerome Powell (via Federalreserve.gov)

“Jerome H. Powell first took office as Chair of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. He was reappointed to the office and sworn in for a second four-year term on May 23, 2022. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System’s principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028.”