English
Fed press conference summary
The Fed cut interest rates by 25 basis points for the third time in a row, as explained in its projections and dot plot, and revised its future plan for future rate cuts, now expecting only two cuts totaling 50 basis points in 2025, instead of the 100 basis points it forecasted after last September’s meeting.
Jerome Powell’s key remarks
Inflation is much closer to its 2% target.
Improved supply has supported the strong US economic performance.
Inflation expectations remain firmly anchored.
We lowered the range today, moving toward a more neutral environment.
The stance of monetary policy is now significantly less restrictive.
We could ease monetary policy more slowly if inflation does not move sustainably toward 2%.
Policymakers’ expectations for interest rates for next year are higher, in line with rising inflation
We are not on a predetermined path.
Reducing policy restrictions too slowly could unduly weaken the economy and employment.
Inflation making progress toward target but still high
Ready to adjust monetary policy to control inflation and support the economy
Slower pace of rate cuts reflects expectations of higher inflation.
Risks and uncertainty around inflation are seen as higher.
As long as the labor market and economy are strong, we can be cautious as we consider further cuts.
The cuts we make next year will be driven by data.
Policymakers’ expectations for interest rates next year are higher, in line with higher inflation.
Reducing policy too slowly could weaken the economy and employment unduly.
Inflation making progress toward target but still high
