• FOMC sees significant under use of labour resources
  • There is no simple recipe for appropriate policy

I’ll add the remaining comments but there’s nothing shocking here in the first headlines, even with the rate rise sooner comment. USD/JPY pushed to 103.94. She’s even quoted some lines straight from the FOMC statement

  • Still unclear on degree of level of labour slack and how quickly it will disappear
  • Gauging labour market slack needs to be more nuanced
  • Repeats that QE will finish in October
  • Slower progress on goals may delay rate increase
  • Sees room for wage increases that don’t boost inflation
  • Tightening policy too soon as inflation moves towards 2% might prevent labour market from fully recovering
  • Emphasis shifting to determining what labour conditions would bring about less accommodation
  • Fed needs to make difficult judgements about cyclical structural influences on labour market
  • Need to urge caution in judging whether recent wage data points to weaker labour conditions than indicated by unemployment rate
  • Could reasonably expect any further increases in labour demand to pull a sizeable share of discouraged workers back into the labour force