Transcript for Federal Reserve leaves key interest rate unchanged, hints of future cuts
My colleagues and I have one overarching goal. To sustain economic expansion. With a strong job market and stable prices for the benefit of the American people. At the FOMC meeting that concluded today we maintained our policy interest rates but made some significant changes to our statement. Since the beginning of the year we of judge that our current policy stance was broadly appropriate and that we should be patient and assessing the need for changes. In light of increased uncertainties in muted inflation pressures. We now emphasize that the committee will closely monitor the implications of incoming information for the economic outlook. And will act as appropriate to sustain the expansion. With a strong labor market and inflation near its 2% objective. I'd like to stick it a step back and review how the changing economic and financial picture brings us to today's decision. So far this year the economy has performed reasonably well with solid fundamentals supporting continued growth and strong employment. Inflation has been running somewhat below our objective that we've expected it to pick up supported by solid growth and a strong job market. Along with this federal picture we've been mindful of some ongoing cross currents. Including trade developments and concerns about global gross. At the time of our last FOMC meeting which ended on May one there was tentative evidence that these cross currents were moderating. The latest data from China and Europe were encouraging. And there are reports of progress in trade negotiations with China are contingent continued patience stance seemed appropriate. In the campaign committee saw no strong case for adjusting our policy rate. In the weeks since our last meeting the cross currents have reemerged. Growth indicators from around the world have disappointed on net. Raising concerns about the strength of the global economy. Apparent progress on trade turned to greater uncertainty. In our contacts in business and agriculture report heightened concerns over trade developments. These concerns may have contributed to the drop in business confidence in some recent surveys. And may be starting to show through to incoming data. Risk sentiment in financial markets has deteriorated as well against this backdrop inflation remains muted. While the baseline outlook. Rates favorable the question is whether these uncertainties will continue to weigh on the outlook and thus call for additional monetary policy accommodation. Many FOMC person participants now see that the case first somewhat more accommodative policy has strengthened.
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