WASHINGTON (dpa-AFX) - Federal Reserve Chairman Jerome Powell is meeting with the press to explain the central bank's monetary policy decision.
As expected, the Federal Reserve on Wednesday announced its first interest rate increase of 2018 at the conclusion of its two-day policy meeting.
In a bit of a twist, the Fed now plans to raise rates three times in both 2018 and 2019. That's up from a previous prediction of just two rate hikes in 2019.
Markets are taking the rate hike projection in stride, with the DJIA up 150 points as Powell takes the podium.
The following are early highlights of his press conference:
On tightening monetary policy:
The rate hike 'another step in gradually scaling back monetary accommodation.'
The Fed 'doesn't intend to alter balance sheet run-down unless economy weakens.'
On inflation:
'There is no sense in the data that we are on the cusp of an acceleration of inflation.
'We have seen moderate increases in wages and price inflation, and we seem to be seeing more of that. We will be alert to that. The idea of the theory would be if you get below the sustainable rate of unemployment for a sustained period, you would see an acceleration of inflation. We would know that then. We are very alert to it. But it's not something we observe at the present.'
On the impact of the tax cut bill:
'I think in the tax bill, there is, there are incentives for, there are tax cut bill that allows expensing of investments should encourage additional investment, that should encourage productivity. In theory, a individual tax bill that lowers tax rates should encourage more labor force participation.'
Copyright RTT News/dpa-AFX