Given uncertainties and muted inflation pressures, we will closely monitor 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 would like to take a step back and review how the changing economic and financial picture brings us to todays 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 but we expect it to pick up, supported by solid growth and a strong job market. Along with this stable picture, this favorable picture we , have been mindful of some ongoing crosscurrents, including trade development and concerns about Global Growth. At the time of our last fomc meeting, which ended on may 1, there was tentative evidence that these cross currents were moderating. The latest data was encouraging from china and europe. And there we
As appropriate to sustain the expansion of the fed sees longer run federal funds rate dropping from 2. 8 to 2. 5 . On inflation the fed closely monitoring inflation at it point. The forecast is for headline inflation to fall 1. 5 this year. The fed sees core inflation slipping to 1. 8 . Then in 2021 the fed sees a reversal, inflation rising back to 2 . On gdp the fed forecast as 2. 1 in 2019. The fed lowered outlook for unemployment this year to 3. 6 . The fed sees the labor market as strong right now but they say the rising economy at a moderate rate. Now the data shows that Consumer Spending picked up but Business Investment softened. Fed sees uncertain forecast of economy, jobs, ininflation. Very interesting statement but no rate cut today. Looking at one fed president or one fed vote away from a rate cut this year. Two fed votes away from two rate cuts this year. Back to you, charles. Charles edward lawrence, thank you very much thats a whole lot. Here to unpack it all, Danielle Di
Significant changes to our statement. Since the beginning of the year we have judged that our current policy stance was broadly appropriate and that we should be patient in assessing the need for any changes. In light of increased uncertainties and unit inflation pressures we now emphasize the committee will monitor the Economic Outlook and will act as appropriate to sustain the expansion with a strong labor market and inflation near its 2 objective. Id like to take a step back to review how the changing economic picture brings us to todays decision. So far this year the economy has performed reasonably well, continued growth and strong employment. Inflation has been running somewhat below or objective but we expect it to pick up supported by solid growth and a strong job market. Along with this favorable picture weve been mindful of ongoing cross currents including trade developments and concerns about Global Growth. At the time of our last meeting which ended on may 1 there was tenta
Replaying bank currencies, i think were a long way from t t that. So essential not too concerned about central barracks no long or Digital Currencies you know, facebook has made i believe quite broad rounds around the world with regulators, supervisors, and lots of people to discuss their plans. That certainty includes us, and its something were looking at. We immediate with a brought range of and there is just a tremendous amount of innovation going out out there. There is pour tenchally benefits, also potentially ricks. So i would echo what Governor Carney said, which is that we will wind up having quite High Expectations from saved and soundness and regulatory standpoint if they do decide to go forward with something. You know, we dont have Plenary Authority over cryptocurrency sits as such. They play through our world through Consumer Protection and money laundering, things like that but through international forums, you know, we have significant input into the payment system, and
Of course, so i think we are a long way from that. Digital currencies are in their infancy. So essentially, not too concerned about, you know, the Central Banks no longer being able to carry out Monetary Policy because of crypto currencies or digital currencies. You know, facebook, i believe, has made quite broad rounds around the world, really, with regulator regulators, supervisors and lots of people to discuss their plans and that certainly includes us. And its something we are looking at. We meet with a broad range of private sector firms all the time on Financial Technology and theres just a tremendous amount of innovation going on out there. The potential benefits here, there are also potential risks, particularly of a currency that could, you know, could potentially have large application. So i would echo what Governor Carney said which is we will wind up having quite High Expectations from a sort of safety and soundness and regulatory standpoint if they do decide to go forward