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WASHINGTON (MNI) - The following is the portion of a transcript from
Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting
Q: The other thing you talked about in this review is the gains that a
super high pressure labor market have particularly for the communities that you
are talking about. If that's something that you are identifying and something
that the Fed is learning more about this year, why not continue to push those
gains, particularly for people who are re-entering the labor force?
A: I think we are doing that. I mean I think we are keeping -- I think we
have made very substantial adjustments to policy over the course of this year.
You think about it. We entered the year expecting some further rate increases,
and we went to patient and we have done three rate cuts. Very substantial shift
and the affects of it will be felt over time. We feel like those shifts are
appropriate to support exactly the outcomes you are talking about which are
continuing strong labor market and job creation.
Q: You were describing the shifts that you have made so far. It was about
specifically these kinds of high pressure labor gains.
A: We said it was about three things. Slowing global economy. You have a
synchronized slow down in economic activity around the globe. It has been
building authorize 18 months now and that's having an affect on U.S. activity.
That's part of the weakness in manufacturing export and business investment. We
have had trade policy uncertainty which we think also has been weighing on
activity and investment and sentiment and we have had inflation which we called
out the risk of inflation running below 2% as a risk that we needed to address.
We have been doing it to address all of those things. I would say the gains in
the labor market have been great to see. It is particularly the fact that people
at the lower end of wages have been getting most of the benefit most the wage
gains in the last couple of years. That's a great thing. You know from our Fed
listens events that we have been hearing from people who live and work in low
and moderate income communities that this is the best labor market they have
seen. And by the way that there is also -- there is so many people who are still
not in the labor market yet and that there is just a lot more good that can be
done there. At the same time we have to think about the whole economy. Yes,
those gains are very positive. We do call them out. They are reason for us to
want to extend the expansion and something we are committed to doing.
--MNI Washington Bureau; +1 202 371 2121; email: firstname.lastname@example.org