Powell Says Dropping 'Accommodative' From Statement Doesn't Signal Policy Change

The transcript discusses a recent increase in the federal funds rate, reflecting economic strength and a gradual return to normal interest levels. It outlines future projections for interest rate increases, emphasizing the importance of communicating economic prospects and policy. The transcript acknowledges economic uncertainties and the potential need for policy adjustments. It clarifies that the removal of a sentence in the FOMC statement does not indicate a change in policy direction, but rather aligns with expectations for gradual rate increases.

What factors could lead to lower interest rates according to the statement?

What does the removal of a specific sentence in the FOMC statement signify?