Statement from Janet Yellen
- Still expects downward pressure on inflation to fade
- Recent global developments are likely to put downward pressure on inflation
- Fed still expects inflation effects to be transitory
- Recent additional decline in oil and USD appreciation mean it will take time for effects to dissipate
- First rate hike will be appropriate when we see further labour market improvement and inflation moving back to target
- Argument could be made for hikes at this time
- FOMC judged it appropriate to wait for more evidence
- Economy is performing well and is expected to continue
- Fed decision won't hinge on any particular data
- Fed doesn't want to overplay recent market developments
- Path of rates likely to be gradual
- Most officials continue to see first hike this year
- Actual policy actions depend on how economy evolves
- How economy evolves is quite uncertain
- Rate path could be steeper or lower that anticipated
Statement over, on to the Q&A