FOMC Press Conference December 17, 2014

TL;DR

Chair Yellen reaffirms the Federal Reserve's view that the current target range for the federal funds rate remains appropriate and that the Committee can be patient in beginning to normalize monetary policy.

Transcript

CHAIR YELLEN. Good afternoon. The Federal Open Market Committee concluded its last meeting of the year earlier today. As indicated in our policy statement, the FOMC "reaffirmed its view that the current 0 to one quarter percent target range for the federal funds rate remains appropriate." The Committee also updated its forward guidance for the fede... Read More

Key Insights

• 🔰 The Federal Reserve remains committed to its current monetary policy stance and will be patient in beginning to normalize policy.
• ☠️ The labor market is showing progress, with strong job growth and a decline in the unemployment rate.
• 🎯 Inflation remains below the Committee's target, but the Committee expects it to gradually move back toward that level.
• 🤪 The Committee anticipates a moderate pace of economic growth going forward.
• 🤑 The decline in oil prices is expected to have a positive impact on the U.S. economy, putting more money in households' pockets.
• 🔒 The Federal Reserve will continue to reinvest proceeds from maturing securities to maintain accommodative financial conditions.
• 🌐 The Committee is closely monitoring global economic developments and their potential spillover effects on the U.S. economy.
• ❓ The Federal Reserve remains committed to transparent communication and accountability to Congress.

Questions & Answers

Q: What did the FOMC decide regarding the federal funds rate?

The FOMC decided to maintain the current target range for the federal funds rate.

Q: What are the recent developments in the labor market?

Job growth has been strong, with average gains of nearly 280,000 per month over the past 3 months, and the unemployment rate has declined to 5.8 percent.

Q: How does the Committee view inflation?

Inflation remains below the Committee's 2 percent objective, but the Committee expects it to gradually move back toward that level.

Q: What is the Committee's assessment of the economic outlook?

The Committee expects moderate economic growth going forward, with continued improvement in the labor market.

Summary & Key Takeaways

• The Federal Open Market Committee (FOMC) concluded its last meeting of the year and decided to maintain the current target range for the federal funds rate.

• The labor market continues to improve, with strong job growth and a decline in the unemployment rate.

• Inflation remains below the Committee's 2 percent objective, but the Committee expects it to gradually move back toward that level.