Federal Reserve Chairman Jerome Powell explains the decision to cut the policy rate, federal funds rate, by 50 basis points to the range of 4.75%-5% after the September meeting and responds to questions in the post-meeting press conference.
Key quotes
“Immigration is one of the things that has allowed unemployment rate to rise.”
“Further declines in job openings will translate more directly into unemployment.”
“My own sense is we are not going back to negative rates for long-term bonds; it feels neutral rate is higher than it was.”
“It feels to me that neutral rate is probably significantly higher than it was pre-pandemic.”
“Fed makes decisions based on its service to American people.”
“Our decisions are never about politics or anything else.”
“Our job is to support the economy on behalf of the American people.”
“If we get it right, will benefit the American people.”
Read the full article here