Powell speech: Taper could conclude around middle of next year

Following the Federal Open Market Committee's (FOMC) decision to keep the policy rate unchanged within the target range of 0-0.25%, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is delivering his comments on the policy outlook.

Key quotes

"Bottleneck effects have been longer-lasting than expected."

"Inflation is still expected to drop back to longer-run goal."

"There are upside risks to inflation."

"Bottlenecks, hiring difficulties could again be greater, more longer-lasting than anticipated."

"Indicators of longer-term inflation expectations still consistent with longer-run inflation goal."

"Fed would respond if inflation remains higher than expected."

"Risks to the economic outlook remains."

"Delta variant has slowed economic recovery."

"Continued progress on vaccinations would support return to more normal economic conditions."

"Fed discussed appropriate pace of tapering once conditions for doing so are satisfied."

"Taper could conclude around the middle of next year."

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.