Powell speech: Policy adjustments will support labor market

Federal Reserve Chairman Jerome Powell explains the decision to cut the policy rate, federal funds rate, by 50 basis points to the range of 4.75%-5% after the September meeting and responds to questions in the post-meeting press conference.

Key quotes

"Labor market bears close watching."

"But we think policy adjustments will support the labor market."

"Retail sales data, Q2 GDP indicates economy growing at solid pace."

"We are not seeing rising layoffs from our business contacts."

"We are not waiting for that."

"Our policy is still restrictive."

"We don't think we need to see further loosening of labor market to get inflation down to 2%."

"Unemployment rate is still a healthy level."

"Participation in job market is at high levels, wage increases still a bit above being consistent with 2% inflation."

"Vacancies still at a pretty strong level."

"Quits have come back down to normal levels."

"Together, they all say it is a solid labor market."

"Downside risks to employment have increased."

"So now, we manage the risks to both of our goals."