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Policy Focus Has Been On Holding Current Level of Restriction

FED
  • Q: If the data remains the same, it stands to reason you need a rate hike to get from 3% to 2% inflation? Was there discussion of a hike today?
    • A: Of course we're not satisfied with 3% inflation. We will return inflation to 2% over time, and we think our policy stance is appropriate to do that. So if we were to conclude that policy is not sufficiently restrictive to bring inflation to 2%, that is what wit would take. We don't see that, don't see evidence of that.
    • Re rate hike discussion: "The policy focus has really been on what to do about holding the current level of restriction. That's where the policy discussion was in the meeting...Clearly, restrictive monetary policy needs more time to do its job. That's pretty clear based on what we're seeing."
  • Q: Is the bar for rate changes higher close to an election?
    • A: We're always going to do what we think the right thing for the economy is when we come to that consensus view that it's the right thing to do for the economy...There's a significant difference between an institution that takes into account all sorts of political events and one that doesn't. That's where the significant difference is. We just don't do that.
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  • Q: If the data remains the same, it stands to reason you need a rate hike to get from 3% to 2% inflation? Was there discussion of a hike today?
    • A: Of course we're not satisfied with 3% inflation. We will return inflation to 2% over time, and we think our policy stance is appropriate to do that. So if we were to conclude that policy is not sufficiently restrictive to bring inflation to 2%, that is what wit would take. We don't see that, don't see evidence of that.
    • Re rate hike discussion: "The policy focus has really been on what to do about holding the current level of restriction. That's where the policy discussion was in the meeting...Clearly, restrictive monetary policy needs more time to do its job. That's pretty clear based on what we're seeing."
  • Q: Is the bar for rate changes higher close to an election?
    • A: We're always going to do what we think the right thing for the economy is when we come to that consensus view that it's the right thing to do for the economy...There's a significant difference between an institution that takes into account all sorts of political events and one that doesn't. That's where the significant difference is. We just don't do that.