mercredi 8 avril 2015
Powell: Remarks on Monetary Policy
Posted on 05:36 by nice news
Thanks for the opportunity to speak to you today. In these brief remarks, I will discuss the progress of the economy and the path forward for monetary policy.1 The current expansion is almost six years old and is now one of the longest since World War II. While the pace of improvement has at times been frustratingly slow, by some measures the recovery is now well advanced. By other measures, there is still room for improvement. Assessing the scope for further improvement will be important in judging the appropriate path for monetary policy.
After its most recent meeting in March, the Federal Open Market Committee (FOMC) modified its forward guidance to say that an increase in the target range for the federal funds rate will be appropriate when the Committee has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term. Such an increase could come as soon as the June FOMC meeting. The timing of liftoff and the pace of subsequent rate increases will depend on incoming data and on realized and expected progress toward our congressionally mandated goals of stable prices and maximum employment. Monetary policy works with long and variable lags, so rate increases need to begin well before we reach those goals.
Let us turn to the two main economic conditions for liftoff that the Committee articulated. We have already seen a great deal of progress in the labor market, and I expect that progress to continue. Despite slowing in March, job creation has been particularly strong over the past two years. The unemployment rate has declined from 10 percent in October 2009 to 5.5 percent in March 2015, a level that is not far above many estimates of its natural rate. But the unemployment rate probably understates the amount of slack still remaining in the labor market. The labor force participation rate continues to be unusually low,
After its most recent meeting in March, the Federal Open Market Committee (FOMC) modified its forward guidance to say that an increase in the target range for the federal funds rate will be appropriate when the Committee has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term. Such an increase could come as soon as the June FOMC meeting. The timing of liftoff and the pace of subsequent rate increases will depend on incoming data and on realized and expected progress toward our congressionally mandated goals of stable prices and maximum employment. Monetary policy works with long and variable lags, so rate increases need to begin well before we reach those goals.
Let us turn to the two main economic conditions for liftoff that the Committee articulated. We have already seen a great deal of progress in the labor market, and I expect that progress to continue. Despite slowing in March, job creation has been particularly strong over the past two years. The unemployment rate has declined from 10 percent in October 2009 to 5.5 percent in March 2015, a level that is not far above many estimates of its natural rate. But the unemployment rate probably understates the amount of slack still remaining in the labor market. The labor force participation rate continues to be unusually low,
Powell: Remarks on Monetary Policy
Categories: Powell: Remarks on Monetary Policy
Inscription à :
Publier les commentaires (Atom)
0 commentaires:
Enregistrer un commentaire