Powell speech: Economy has been very hard for forecasters to predict

Federal Reserve Chairman Jerome Powell explains the decision to leave the policy rate, federal funds rate, unchanged at the range of 5.25-5.5% and responds to questions in the post-meeting press conference.

Key quotes

"Since December, goods and housing inflation has been higher than expected."

"My expectation is over the course of this year, inflation will move back down but my confidence in that is lower than it was before."

"Looks like substantial lags in when lower market rents will turn up in the data."

"Active tool of monetary policy is interest rates."

"Plan to slow balance sheet runoff is aimed at making it smooth, avoiding market turmoil."

"Balance sheet slowdown now is to ensure a smooth process and not market turmoil like last time."

"Economy has been very hard for forecasters to predict."

"There are paths to not cutting, and paths to cutting -- it will depend on the data."

"As inflation has come down to below 3%, the Fed's employment goal comes back into focus."

"I don't know if inflation will fall enough, or won't fall enough, to merit rate cuts."

About Jerome Powell (via Federalreserve.gov)

"Jerome H. Powell first took office as Chair of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. He was reappointed to the office and sworn in for a second four-year term on May 23, 2022. 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."