Powell speech: Statement language flags bar for taper could be met as soon as next meeting

FX

Following the Federal Open Market Committee’s (FOMC) decision to keep the policy rate unchanged within the target range of 0-0.25%, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is delivering his comments on the policy outlook.

Key quotes

“Fed has met the test for inflation goal to taper.”

“Many on FOMC think the test for employment to taper has been met; others think it is close.”

“Language in a statement meant to flag bar for taper could be met as soon as next meeting.”

“Inflation forecasts have moved up a bit for this year and in the out years and is a reflection of bottlenecks and shortages that have yet to abated in meaningful way.”

About Jerome Powell (via Federalreserve.gov)

Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. 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.

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