00:00I supported the FOMC's decision earlier this week to maintain the policy rate, the federal funds rate, in the range of 3.5 to 3.75%.
00:08I believe that this setting is neutral in real inflation-adjusted terms, neither restrictive nor accommodative,
00:16and appropriate given my assessment of the baseline path for the economy and the balance of risks.
00:21With inflation above target and the risks to the outlook evenly balanced, I believe it would be unadvisable to lower the rate into accommodative territory at this time.
00:33I could support a lower policy rate if further signs of labor market weakness emerge,
00:39provided there are no signs of increasing persistence in above-target inflation and that inflation expectations remain well anchored.
00:47I could also support lowering the nominal policy rate if expected inflation declines sustainably to 2% or below.
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