“We are committed to achieving and sustaining a stance of monetary policy that is sufficiently restrictive to bring inflation down to our 2% goal over time,” Powell said at a press conference following the decision.
He emphasized the Fed will “proceed carefully” as it assesses incoming data and the evolving outlook and risks, echoing remarks he made at the Fed’s annual symposium in Jackson Hole, Wyoming last month.
After raising rates rapidly last year, “now we’re fairly close, we think, to where we need to get,” Powell said.
There were no surprises from this Fed meeting. The plan remains to raise rates again or until there is clear evidence the inflation is back under control. The intervals between hikes are lengthening so it is possible they will wait until December to hike but November remains the most likely.
Chairman Powell referred to progress in the unemployment statistics even though the headline figure has not moved much. In fact unemployment made a new recovery high at the last reading so upside follow through would represent a breakout.Click HERE to subscribe to Fuller Treacy Money Back to top