At yesterday’s decision, Governing Council judged that the outlook continues to warrant a policy interest rate that is below its neutral range. Given the mixed picture that the data present, it will take time to gauge the persistence of below-potential growth and the implications for the inflation outlook.
With increased uncertainty about the timing of future rate increases, Governing Council will be watching closely developments in household spending, oil markets and global trade policy. I would like to thank Sharon Kozicki and Eric Santor for help in preparing this speech.