Here are the highlights of the statement by the new Fed President Jerome Powell:
Need to avoid overheating of the US economy, but inflation may still pick up.
Further gradual increases in interest rates.
Volatility in markets will not deter the Fed from further interest rate hikes.
Job market remains robust, wage growth increases, consumption remains solid.
„After easing substantially during 2017, financial conditions in the United States have reversed some of that easing. At this point, we do not see these developments as weighing heavily on the outlook for economic activity, the labor market and inflation. Indeed, the economic outlook remains strong.“
Fed wants to try balancing economic growth and inflation:
„in gauging the appropriate path for monetary policy over the next few years, the FOMC will continue to strike a balance between avoiding an overheated economy and bringing PCE price inflation to 2 percent on a sustained basis.“
„the economic outlook remains strong“