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  • 6 hours ago
The Federal Reserve held the benchmark interest rate steady on Wednesday (June 17) and policymakers expect rising borrowing costs later this year, reflecting growing concerns about inflation above the U.S. central bank's 2% target.
Transcript
00:00Meanwhile, the new chair, Kevin Walsh, spoke on Wednesday afternoon and quickly turned to a discussion on why the Fed
00:07is changing its approach to communicating with the public, including changes to the so-called dot plot of economic projections
00:13by Fed officials.
00:19You might have already noticed something, a difference in today's policy statement.
00:24It's a bit shorter, a bit simpler, and it dispenses with some older language.
00:30That statement just gives you the facts as best we can judge it.
00:35Absent also is so-called forward guidance, which we agreed was not well suited to the current policy conjuncture.
00:43I'm appointing a task force in each of five areas that are central to the broad conduct of monetary policy.
00:50First, Fed communications.
00:53Second, the Fed's balance sheet.
00:55Third, our use and reliance on existing data sources.
01:02Fourth, productivity and jobs in an era of transformation.
01:07And last, the Fed's inflation frameworks.
01:10These subjects are timely, consequential, and in my view, worthy of a fresh look.
01:17We made some changes today.
01:19I expect more changes to come.
01:22And some of those might well be worthy of a press conference.
01:25Thank you all very much.
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