March 19, 2025 4:40 pm ET|WSJ Pro

“Inflation has eased significantly over the past two years, but remains somewhat elevated relative to our 2 percent longer-run goal,” Federal Reserve Chair Jerome Powell said. Photo: Kevin Dietsch/Getty Images

Federal Reserve Chair Jerome Powell discussed the central bank’s decision to maintain its benchmark federal-funds rate at around 4.3% during a press conference following the Fed’s latest policy meeting. Powell cited elevated uncertainly about the economic outlook, adding that, “We do not need to be in a hurry to adjust our policy stance, and we are well-positioned to wait for greater clarity.” Powell also discussed the central bank’s decision to slow its balance sheet runoff. Here is a transcript:

JEROME H. POWELL: Good afternoon. My colleagues and I remain squarely focused on achieving our dual mandate goals of maximum employment and stable prices for the benefit of the American people. The economy is strong overall and has made significant progress toward our goals over the past two years. Labor market conditions are solid, and inflation has moved closer to our 2 percent longer-run goal, though it remains somewhat elevated. In support of our goals, today the Federal Open Market Committee decided to leave our policy interest rate unchanged. We also made the technical decision to slow the pace of decline in the size of our balance sheet. I’ll have more to say about these decisions after briefly reviewing economic developments.

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