Powell speech: We can be more cautious in reducing rates

Federal Reserve Chairman Jerome Powell explains the decision to cut the policy rate, federal funds rate, by 25 basis points to the range of 4.25%-4.5% after the December meeting and responds to questions in the post-meeting press conference.

Key quotes

"Squarely focused on two goals."

"The economy is strong, labor market remains solid."

"Inflation much closer to the 2% goal."

"Consumer spending resilient, investment in equipment has strengthened."

"Housing activity has been weak."

"Improving supply has supported strong us economic performance."

"Wage growth has eased."

"Labor market not a source of inflation pressures."

"Total PCE probably rose 2.5% in 12 months ending in November."

"Core PCE prices probably rose 2.8% in November."

"Inflation expectations remain well-anchored."

"Risks to achieving goals roughly in balance."

"Attentive to risks on both sides."

"We can be more cautious going forward, can be more cautious in reducing rates."

"Reducing policy restraint too slowly could unduly weaken economy, employment."

"Policymaker projections for policy rate are higher for next year, consistent with higher inflation."