Powell speech: Fed's review of its framework will continue into middle of next year

Following the Federal Open Market Committee's (FOMC) decision to lower the federal funds target rate by 25 basis points to 1.5% - 1.75% range, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is responding to questions from the press, with key quotes, via Reuters, found below.

"Inflation expectations are central to the Fed's framework."

"The Fed's review of its framework will continue into the middle of next year."

"If the US were to have a sustained reduction in trade tensions, it would be quite positive over time."

"The Fed sees $1.45 trillion as the minimum level of reserves."

"During recent crunch, liquidity didn't seem to flow as expected in the repo market."

"We are still looking at measures to help liquidity flow without damaging safety and soundness."

About Jerome Powell (via Federalreserve.gov)

Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028.