Powell speech: Inflation will decline closer to 2% goal as economy adjusts

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

"Supply and demand imbalances have contributed to sizable price increases."

Bottlenecks are affecting how supply can respond to demand."

"Inflation running well above 2% goal."

"Bottlenecks longer-lasting than expected."

"Drivers of higher inflation predominantly connected to COVID-related factors."

"We understand difficulties of high inflation for families."

"Our tools can't ease supply constraints."

"We think our economy will adjust to supply and demand imbalances and inflation will recede."

"Believe inflation will decline closer to 2% goal as economy adjusts."

"Global supply chains will return to normal, but timing uncertain."

If we see signs inflation is moving persistently beyond levels we want, we will adjust."

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.