Jerome Powell Speech: We've reached bottom end of range of neutral rate
Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is now responding to questions from the press, with key quotes (via Reuters) found below.
- The runoff of the balance sheet has been smooth.
- Don't see Fed changing policy of keeping balance sheet runoff on autopilot.
- We will continue to use the rate policy as the active tool.
- Inflation trend allows the FOMC to be patient going forward.
- We've reached bottom end of range of Committee's estimate of neutral rate.
FOMC raises the target for fed funds rate by 25bp to 2.25% - 2.5%.
Following its 2-day meeting, the Federal Open Market Committee announced that it would hike the benchmark interest rate by 25 basis points to the target range of 2.25% - 2.5% in a widely expected decision.
EUR/USD breaks below 1.1400 as Fed raises rates.
The EUR/USD pair moved to the downside after the Federal Reserve delivered a “dovish” rate hike. The pair was trading around 1.1430 and dropped quickly below 1.1400 following the release of the statement and the updated projections. It bottomed at 1.1380, approaching Asian session lows.
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.