We are fairly close to where we need to get

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 September FOMC meeting and responds to questions.

Key takeaways

“Recent labor market report was a good example of what we want to see.”

“We are fairly close to where we need to get.”

“I wouldn’t attribute huge importance to one hike.”

“Nonetheless, we need to get to a place where we are confident we can bring inflation down to 2% over time.”

“Stronger economic activity is main reason for needing to do more with rates.”

“In terms of neutral rate, you only know when you get there.”

“It may be that the neutral rate has risen.”

“It is plausible that the neutral rate is higher than the longer run rate.”

“It is a good tihng we’ve seen meaningful rebalancing in labor market without much increase in unemployment.”

“I still think, and broadly people still think, there will need to be some softening in labor market.”

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.”