Yellen statement before the Q&A
- Our cautious approach to policy has been appropriate
- Some factors weighing on weak growth were anticipated (cites trade and oil)
- Slowdown in some parts of the economy, particularly weak business investment was a surprise
- Weak consumer spending was also a negative surprise
- Q1 slowdown in consumer spending appears to be temporary
- Pace of labor improvement has slowed markedly
- Some signs that wage growth may finally be picking up
- Important not to overreact to 1-2 weak jobs reports, we will be watching carefully
- Much of the shortfall in inflation continues to reflect energy and imports
- Core inflation 'close' to 1.5%, expects it will rise to 2% over next 2-3 years
That's a long timeline. The kind of timeline that argues for lower rates and a lower dollar
- Can't take long run inflation expectations for granted
- Median growth expectations slightly lower
- Unchanged rate reflects FOMC's careful approach, particularly in light of mixed readings on jobs and elsewhere
- Caution all-the-more appropriate give low rates
- Vulnerabilities in global economy remain
- Calls global growth 'sluggish'
- Investor perceptions for risk can change abruptly
- FOMC forecasts aren't a fixed plan for policy
