Powell speech: Liftoff test is clearly not met on employment goal

Following the Federal Open Market Committee's (FOMC) decision to keep the policy rate unchanged and to reduce asset purchases by $15 billion per month, FOMC Chairman Jerome Powell is delivering his comments on the policy outlook.

Key quotes

"We understand that people with lower incomes are affected more by inflation."

"We will use our tools to make sure high inflation doesn't become a permanent feature."

"Wages is a key measure of how tight the labor market is."

"We have to be humble about what we know about this economy."

"We want to see further development of the labor market in the absence of another COVID spike."

"People are still staying out of the labor market in part due to COVID."

"There is room for a whole lot of humility here on maximum employment."

"We have high inflation and we have to balance that with our employment goals."

"We are in a complicated situation."

"We hope to get more clarity over the first half of next year."

"When we reach maximum employment, it's very possible inflation test will already be met."

"We are not evaluating the liftoff test today."

"Liftoff test is clearly not met on employment goal."

About Jerome Powell (via Federalreserve.gov)

Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028.