Federal Reserve Chairman Jerome Powell holds a news conference to explain why they have decided to leave the policy rate, federal funds rate, unchanged at the range of 5.25-5.5% at the September FOMC meeting and responds to questions.
Key takeaways
“Government shutdowns don’t traditionally have much of a macro effect.”
“Energy prices being higher is a significant thing.”
“Higher energy prices, sustained, can affect inflation.”
“The economy appears to have significant momentum.”
“A soft landing is a primary objective, that’s what we have been trying to achieve.”
“The worst thing we can do is to fail to restore price stability.”
“We have the ability to move carefully, that’s what we are planning to do.”
“Growth has come in stronger than expected, requiring higher rates.”
“Last three readings of inflation have been very good, well aware we need more than three good readings.”
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.”
Source: https://www.fxstreet.com/news/powell-speech-higher-energy-prices-sustained-can-affect-inflation-202309201905