Powell: The Fed's policy rate is moderately tight.

Fed Chairman Powell: In my view, the Fed's policy rate is moderately tight. The labor market is in a "peculiar balance". The Fed will abandon the flexible average inflation targeting framework in 2020. GDP growth has significantly slowed, reflecting a slowdown in consumer spending. One-time price increases cannot be allowed to evolve into sustained inflation problems. The stable unemployment rate allows the Fed to "proceed cautiously" when considering adjusting policy stance. The short-term price effects of tariffs are reasonable. Tariffs may lead to persistent inflation. The slowdown in job growth has not released enough slack in the labor market, which is something we hope to avoid.