Barring"unexpected weakness in the labor market" that could trigger"a policy response", the Federal Reserve's long anticipated rate cut isn't on the immediate horizon. The latter is Jerome Powell's central message for the markets in what has become a predictable set of opening comments: the labor market remains"strong", inflation is"still too high", that continued progress on inflation"is not assured", that restrictive policy is"likely at its peak for this tightening cycle", and that the rate cut, when it likely comes, will be sometime"later this year".

Powell said risks to achieving the Fed's long-term policy goals are"moving into better balance", that participation in the labor market is improving, and that nominal wage growth is easing. He also repeated that reducing policy restraint too quickly would raise the risk of a policy reversal and a resumption in rate hikes. In a new comment, he said officials are beginning to discuss slowing down the reduction in the balance sheet, not as an adjustment to policy but to limit stress on the financial markets. To date, the Fed has cut its holdings by just under $1.5 trillion.

To repeated questions about the confidence that Fed policymakers need to be assured that inflation was sustainably low enough to justify a rate cuts, Powell noted that while the last few months of inflation numbers haven't raised"anyone's confidence, the story is essentially the same" as it has been. He said,"inflation is coming down on a sometimes bumpy path" which has been anticipated by policymakers. FOMC participants are watching the data to see if a couple of months of less favorable numbers are going to turn into a longer pause in the fight against inflation. Powell emphasized that the FOMC is looking at the performance of inflation over time, not just a few months. As to the recent data, Powell said that the FOMC is"not going to overreact, nor are we going to ignore them."

Powell's remarks regarding easing the pace of reductions of reserve bank holdings from the current"abundant" reserves and aiming for"ample" reserves addressed ensuring that market disruptions are avoided."By going slower you can get farther," Powell said. Tapering the pace avoids problems in a system where"liquidity is not evenly distributed." He added,"We are looking at what would be a good time and what would be a good structure" and that changes could be coming"fairly soon". He affirmed the longer run goal is to return to a balance sheet that is mostly treasuries, but added that is"not urgent right now".

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.