- Economy has made considerable progress toward dual goals
- In recent months inflation has shown a lack of progress and we remain highly attentive
- Inflation still too high, further progress not assured
- Private domestic final purchases were as strong as the second half of last year, that is an underlying signal for demand
- Supply and demand for labor has come into better balance
- Strong job creation has been met with increased supply but demand still exceeds supply
- Economic outlook is uncertain
- We do not expect it will be appropriate to cut until we gain greater confidence inflation moving towards 2%
- It is likely that gaining greater confidence will take longer
- We are prepared to hold rates longer
- We are also prepared to respond to an unexpected weakening in the labor market
- We will make decision meeting by meeting
- Slowing pace of balance sheet runoff will ensure a smooth transition
- Slowing pace does not mean balance sheet will shrink to less than it would otherwise
There's nothing pointing to rate hikes here and that's been enough to spark a relief rally in risk assets and a dip in the US dollar.