This article provides highlights of the press conference, Fed Chairman Janet Yellen, which took place on Wednesday after the two-day meeting of the Monetary Policy Committee of the US central bank.
On the decision of the Committee
"Preservation of the monetary policy unchanged at this stage will allow us to ensure that the labor market continues to strengthen, despite of the risks abroad. Such caution is appropriate, given that short-term interest rates are still close to zero, which means that in the arsenal of the central bank's wide range of instruments of monetary policy that will allow us to respond to any changes in the economic situation. "
On the policy of negative interest rates
"It is not an object of our discussions. The Committee continues to believe that we are on the right track, watching the improvement of the overall economic situation and inflation is showing signs of growth. And, as I said, if things continue to develop in the same vein, we are likely to continue to gradually raise interest rates.Again, this is not a permanent solution, we will be watching economic indicators and react to them accordingly.But we do not spend time on active discussion of the negative rate policy. "
About wages Chamber
"I must say that watching closely the improving situation on the labor market, I am somewhat surprised that the growth rate of wages so low. ... The lack of sustained wage growth is a sign of some weakness in the labor market. Nevertheless, we expect the growth of hourly rates in the near future. "
About risks to the economic outlook
"The committee certainly believes that the prospects for risks decreased. Nevertheless, we continue to monitor the previously stipulated risk factors.
"I would like to note that the Committee has decided not to characterize the balance of risks is shifted downward."
"In the face of global shocks the US economy has been very stable in recent months."
On the global economic and financial conditions
"From the beginning, concerns about the global economic outlook led to increased financial market volatility and the tightening of financial conditions in the United States, although recent financial conditions have improved markedly. In addition, the global economic growth rate slightly lower than previously expected. Nevertheless, these unexpected events have not led to significant changes in the projections of the Committee. "
"Consumer price inflation, as measured by the price index for personal consumption expenditures, during the 12 months to January, rose to 1.25%. Core inflation, which excludes energy and food, also showing signs of growth. Although it is still to be seen whether this trend is long, as the decline in energy prices and the growth of the dollar may well continue to weigh on overall consumer prices. But once these factors are eliminated, and the labor market continues to strengthen, the Committee expects that inflation will rise to 2% over the next two to three years. "