Stressing that the"full effects" of prior tightening"have yet to be felt", Jerome Powell and the Federal Reserve are keeping open the possibility of further rate hikes later this year. Powell in his opening remarks referred repeatedly to the Summary of Economic Projections which sees 50 basis points of additional hikes this year versus the last SEP in March.

Powell said"nearly all" the committee members view it"likely" that rates will indeed climb higher this year, expectations tied directly to the continuing strength of employment. The Fed Chair described the labor market as"very tight" including the pace of payroll growth and low level of unemployment (3.7 percent in May). Yet he did point to a rising participation rate and easing wage growth as indications that supply and demand in the jobs market are becoming more balance, an outcome which would help cool inflationary pressures.

He stressed repeatedly the substantial degree of tightening the Fed has conducted over the last year-and-a-half, totaling 500 basis points on the Fed funds target range and including the"brisk" reduction of the Fed's securities holdings. Nevertheless, Powell said, in reference to the Fed's inflation target,"We have a long way to go to get to 2 percent".

In the question and answer period, Powell was clear that the July 25-26 FOMC meeting would be"live" in the sense that deliberations are going to be based on the data released during the intermeeting period; markets did not get guidance on the likely direction for the fed funds rate up, unchanged, or down. Powell referred back to the latest FOMC statement that indicated the committee was taking a breather to consider the impact of past rate hikes and take a look at where the expected long and variable lags in the transmission of monetary policy had taken place and where they were likely to show up in the future.

Powell spoke several times about restrictive monetary policy as nearing its"destination" and that it is only good sense to slow the size and/or speed of the rate hikes as that destination gets closer. While not all FOMC participants agreed with the pause in raising rates, none of them anticipate a rate cut in 2023, Powell said.

The questions posed by reporters to the Chair remain focused on the inflation outlook as the main driver of monetary policy. Powell noted,"We're 2-1/4 years into this" and before the FOMC lets up on restrictive monetary policy,"we want to see core inflation moving down decisively" which has not happened yet."I would say again that ... we've moved much closer to our destination of a sufficiently restrictive rate," although he noted that risks to inflation are still to the upside.

The Fed announced in 2011 that then Fed Chair Ben Bernanke would hold press briefings four times a year to explain the FOMC's latest quarterly economic projections. The purpose of the briefings is to provide additional context for the FOMC's policy decisions and to allow for questions-and-answers with the press. According to the Fed, the"introduction of regular press briefings is intended to further enhance the clarity and timeliness of the Federal Reserve's monetary policy communication." The press briefing is held at 2:30 p.m. ET on the days of FOMC statements in which quarterly projections are released. Beginning in 2019, the briefing will be held after each FOMC meeting. The policy statement is released at 2:00 p.m. ET after the conclusion of every FOMC meeting regardless of whether there are forecasts or not.

The Fed’s meeting statement and economic projections can move financial markets. However, the Fed’s meeting statement — which indicates any changes in monetary policy—typically is very concise and lacking in detail. However, the Fed now releases its economic forecasts four times a year. As of March 20, 2013, the forecasts are released at the same time as the FOMC statement during the months of March, June, September, and December. After each of the 8 Fed meetings, the chair holds a press conference to explain the forecasts and other policy issues. The chair’s press conference allows for the financial markets and public in general to learn more about why and how the monetary policy decision was made and to learn more about FOMC views on the direction of the economy—including real growth, inflation, unemployment, expected timing of changes in the fed funds rate, and expected levels of the fed funds rate in the near term.