In this FOMC Press Conference Powell noted the following key points:
- We have covered a lot of ground and the full effects of our tightening have yet to be felt.
- Today we decided to leave our policy interest rate unchanged and continue to reduce our securities holdings.
- Nearly all committee participants view it as likely that some further rate increases will be appropriate this year to bring inflation down to 2% over time.
- Committee participants generally expect subdued growth to continue in our summary of economic projections. The projection has real GDP growth at 1.0% this year and 1.1% next year, well below the median estimate of the longer-run normal growth rate.
- Inflation remains well above our longer-run 2% goal.
- If the economy evolves as projected the median participant projects that the appropriate level of the federal funds rate will be 5.6% at the end of this year.
- Reducing inflation is likely to require a period of below trend growth and some softening of labor market conditions.