Powell speech: Base effects carry no implication for rate of inflation

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

"During the time of reopening, we are likely to see upward pressure on prices but will be temporary."

"Episode of one-time price increases is not likely to lead to persistent inflation."

"One-time price increases as the economy reopens is not likely to lead to persistently high inflation inconsistent with Fed's goals."

"If we do see inflation expectations materially above 2%, will use tools to bring it down."

"Base effects will contribute about 1 percentage point to headline inflation."

"Base effects will contribute about 0.7 of a point to core inflation in April."

"Base effects carry no implication for the rate of inflation."

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.