FOMC Press Conference December 12, 2012

TL;DR

Federal Reserve Chair announces continued support for the economy, focusing on reducing unemployment and promoting growth.

Transcript

CHAIRMAN BERNANKE. Good afternoon. It's been about three and a half years since the economic recovery began. The economy continues to expand at a moderate pace. Unfortunately, however, unemployment remains high. About 5 million people-more than 40 percent of the unemployed-have been without a job for six months or more, and millions more who say th... Read More

Key Insights

• ❓ The Fed's policies focus on reducing unemployment and promoting economic growth.
• 🛄 Changes in communication strategies aim to provide transparency and clarity to the public.
• ☠️ Asset purchases and future rate policies are adjusted based on labor market improvements.
• ⚖️ The Fed's accommodative policies balance economic support with potential risks and costs.

Questions & Answers

Q: What are the Federal Reserve's current policies aimed at addressing in the economy?

The Federal Reserve's policies are focused on reducing unemployment, promoting economic growth, and maintaining price stability.

Q: How does the Fed plan to continue supporting the economy given high unemployment rates?

The Fed will maintain highly accommodative policies, including asset purchases and guidance on future rate policies, until substantial improvement in the labor market is seen.

Q: Why has the Fed decided to adjust its communication strategy regarding future rate policies?

The Fed aims to provide more transparency and clarity to the public about the conditions that will influence future rate decisions based on economic conditions.

Q: How does the new guidance on future rate policies benefit the economy and markets?

The new guidance offers more information for the markets to adjust expectations based on evolving economic conditions, acting as an automatic stabilizer during economic fluctuations.

Summary & Key Takeaways

• Chairman Bernanke discusses the state of the economy after three years of recovery.

• The Fed continues its accommodative policy to counter high unemployment and promote economic growth.

• Modifications to future rate policies and asset purchases aim to align with improving labor market conditions.