Powell opens by saying the Fed has "one.........>

FED: Powell opens by saying the Fed has "one overarching goal: to sustain the

economic expansion".

Powell:

- We've expected inflation to pick up...mindful of crosscurrents such as global

trade. At the time of the last FOMC, there was evidence that the global

crosscurrents were moderating. Our patient stance seemed appropriate. In the

weeks since then, the global crosscurrents have re-emerged, etc. Risks sentiment

in financial markets have risen, inflation remains muted.

- Many on the FOMC see the case for accommodation has strengthened. Cites May

payrolls, though qualifies this with some positive indicators.

- GDP forecasts little changed, just above normal. This masks some important

details re composition of growth. Unexpected strength in Q1 was inventory and

net export led. Consumption and biz investment weak. The limited evidence at

this time suggests biz investment slowed in Q2. Baseline outlook remains

favourable, but risks of less favourable outcomes has risen.