FOMC Janet Yellen Press Conference; Conference Call.
- Inflation continues to run below expectations.
- Continue to expect this to fade over time but notes recent International developments will keep pressure on inflation.
- Continues to anticipate a raise when it sees further improvement in labor market and remains confident inflation will move back to 2%.
- Continues to expect a moderate pace of overall GDP growth.
- Unemployment participation rate still remains low for the Fed.
- Continues to see inflation negatives as transitory but will take longer than expected to dissipate.
- Notes now providing medians for people to use as measurement but it should not be viewed as a collective view.
- Lower inflation forecasts largely reflects lower energy and import prices.
- Notes events in China and emerging markets have led to further market volatility.
- Notes 4 participants moved projections but 'great majority' of participants continue to see 2015 as an appropriate time for raising rates.
- Says every meeting is a live meeting and that includes October. Says would call a press conference.
- Notes domestic economy is doing well.
- Says does not need to hit both targets before raising rates.
- Focused on China and Emerging Markets; says not surprised to see slowing in China growth as this has been expected over time.
- Bigger question is how much risk is around in the China slow down; Notes August activity highlighted some of the concerns.
- Notes watching China exchange rates.
- Fed should not be responding to up and downs of the markets; it is incumbent on the Fed to ask what is causing volatility in markets.
- Have seen some tightening of financial conditions.
- In spite of all the International headwinds the U.S. economy continues to perform.
- Says would be surprised if we never escaped ZIRP.
- Says did not seriously consider negative rates; says one participant in the committee would like to see additional stimulus.
- Sees further improvements in the Housing market;
- Notes government shutdown threats did not play a role in the current decision.
- Conference call ends.