Powell speech: Unlikely to see persistent rise in inflation with slack in labor market

Following the Federal Open Market Committee's (FOMC) decision to keep the policy rate unchanged within the target range of 0-0.25%, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is delivering his comments on the policy outlook.

Key quotes

"Economic activity has just recently picked up, will take some time to meet goals."

"Economy can't fully recover until people feel it's safe to resume activities."

"We don't have a test for liftoff or taper to do with the virus."

"It seems unlikely that we would see a persistent rise in inflation while there is still significant slack in labor market."

"It would take time to move inflation expectations up, would expect that to come with strong labor market."

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.