FOMC Press Conference September 21, 2016 | Summary and Q&A

6.0K views
September 21, 2016
by
Federal Reserve
YouTube video player
FOMC Press Conference September 21, 2016

TL;DR

The Federal Reserve has decided to keep interest rates unchanged due to uncertainty in the economy, but has indicated that future rate hikes are likely.

Install to Summarize YouTube Videos and Get Transcripts

Key Insights

  • 👨‍💼 Economic growth has picked up, driven by household spending, but business investment remains weak.
  • ☠️ Job gains have remained solid, but measures of labor market slack and unemployment rates have shown little change.
  • 😮 Inflation has been below the Fed's 2 percent target, but is expected to rise gradually as the job market strengthens further.
  • 😘 The Fed is maintaining a cautious approach to paring back monetary policy support due to low interest rates and the need for further evidence of progress towards its goals.
  • ☠️ Projections for GDP growth and the federal funds rate have been revised down, reflecting slower long-term growth and a low neutral interest rate.

Transcript

Good afternoon. At our meeting that concluded earlier today, my colleagues and I on the Federal Open Market Committee discussed overall economic conditions and decided to keep the target range for the federal funds rate at 1/4 to 1/2 percent. We judged that the case for an increase has strengthened but decided for the time being to wait for further... Read More

Questions & Answers

Q: Why did the Federal Reserve decide not to raise interest rates?

The decision was made due to uncertainty in the economy and a need for further evidence of progress towards the Fed's goals of maximum employment and price stability.

Q: What factors are influencing the Fed's decision on interest rates?

Factors such as economic growth, job gains, inflation, and labor market conditions are all being considered in the decision-making process.

Q: How will the decision impact the economy?

The decision to keep interest rates unchanged is aimed at supporting ongoing economic growth and an improving job market. It is expected to provide stability and further progress towards the Fed's goals.

Q: Are there any risks associated with keeping interest rates low?

Low interest rates can lead to a reach for yield and potential bubbles in certain sectors, such as commercial real estate. The Fed is closely monitoring these risks and has issued guidance to address them.

Summary & Key Takeaways

  • The Federal Open Market Committee has decided to keep interest rates at their current levels of 1/4 to 1/2 percent.

  • Economic growth has picked up, driven by household spending, but business investment remains weak.

  • Job gains have remained solid, but measures of labor market slack and unemployment rates have shown little change.

Share This Summary 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on:

Explore More Summaries from Federal Reserve 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on: