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