Video: Federal Reserve Extends Pause on Rate Cuts

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 do not need to be in a hurry to adjust our policy stance, and we are well-positioned to wait for greater clarity. So when we say separating the signal from the noise, that’s just a way of saying that things are highly uncertain and that you’re reading about developments. The news is full of developments of tariffs being put on and taken off, and things like that. That’s — some of that is noise in the sense that it’s not really telling you anything. So I would tell people that the economy seems to be healthy. We understand that sentiment is quite negative at this time. And that probably has to do with turmoil at the beginning of an administration that’s making big changes in areas of policy. And that’s probably part of it. I do think the underlying unhappiness people have about the economy, though, is more about the price level.