- Consumer confidence continues to drive U.S. economic activity, Fed Chair Jerome Powell and says the FOMC decided to cut the federal funds target rate by a quarter of a point to help keep the economy strong and as "insurance against ongoing risks."
- He adds though, that the central bankers expect the economy to continue to expand at a moderate rate.
- Among ongoing risks are the continuing uncertainty over Brexit and notes that trade policy uncertainties "have waxed and waned" since the last meeting in July.
- Business investment remains weak as those trade uncertainties have discouraged businesses from investing, Powell said.
- As for inflation, "pressures clearly remain muted," Powell said.
- 3:22 PM ET: Press conference ends.
- 3:17 PM ET: The Fed will stop cutting rates "when we think we've done enough," he adds. "I see high value in sustaining the expansion" in that the longer it runs, the more people that benefit from it.
- As for political pressures against the Fed (see Trump tweet below), Powell says "Morale is very high. We're unified. We're doing the best job we can in serving the American people."
- 3:10 PM ET: Negative rates are likely not in the cards, not if Powell's still in charge. He said he doesn't even see turning to that option in times of crisis.
- 3:06 PM ET: "It's a challenging time," he explains. "We're not on a pre-set course. We'll take things meeting by meeting and we'll try to be as transparent as we can."
- 3:05 PM ET: President Trump weighs in with, "Jay Powell and the Federal Reserve Fail Again" in a tweet. "No 'guts,' no sense, no vision!" he adds.
- 2:55: PM ET: It's possible the Fed will have to resume balance-sheet growth, Powell noted. "We may resume organic balance sheet growth earlier than thought," he said.
- 2:50 PM ET: "We were aware of tax payments and bond sales," he said, regarding the money market pressures. "It was a stronger the response than we expected."
- Furthermore, he said, "We don't see it as having implications for the broader economy. If we experience another round of pressures in the money markets, we have tools on funding pressures and will use as needed."
- 2:44 PM ET: Regarding the Fed's recent moves to provide liquidity for the repo markets, Powell assures the market that the Fed will "over time provide sufficient reserves supply."
- Live webcast here.