Powell speech: We see higher inflation persisting and have to be ready to address that risk

Following the Federal Open Market Committee's (FOMC) decision to keep the policy rate unchanged and to reduce asset purchases by $15 billion per month, FOMC Chairman Jerome Powell is delivering his comments on the policy outlook.

Key quotes

"Inflation that we are seeing is not due to a tight labor market."

"Inflation we are seeing now is due to bottlenecks, and strong demand."

"We have to be aware of the risks of the trade-off between inflation and employment."

"We see higher inflation persisting and have to be in place to address that risk."

"We are positioning ourselves to address a range of plausible outcomes."

About Jerome Powell (via Federalreserve.gov)

Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. 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.