Powell speech: Unexpected weakening in labor market would make us cut rates sooner

Federal Reserve Chairman Jerome Powell explains the decision to leave the policy rate, federal funds rate, unchanged at the range of 5.25-5.5% and responds to questions in the post-meeting press conference.

Key quotes

"We are not looking for a slide in employment, but would cut rates if we saw a weakening."

"If we saw unexpected weakening in the labor market, that would make us cut rates sooner."

"In the base case, where the economy is healthy with a strong labor market, we can be careful as we think about rate cut timing."

"There was no proposal to cut rates today."

"SEP is good evidence of where FOMC is at in terms of forecasts."

"There is a wide disparity of views on the Committee."

About Jerome Powell (via Federalreserve.gov)

"Jerome H. Powell first took office as Chair of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. He was reappointed to the office and sworn in for a second four-year term on May 23, 2022. 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."