a dramatic change seen in the overall numbers yet, the more detailed picture that emerged by summer of this year pointed to an outlook of slowing growth and inflation falling short of our goal. this in turn argued for a somewhat more accommodative monetary policy stance. the combination of muted inflation, slowing global growth, and uncertainties related to trade and other global developments led the fomc to adjust the federal funds rate down by a quarter of a percentage point and conclude the run - off of the fed ’ s balance sheet two months earlier than previously indicated. our policy actions and communications have contributed to an easing of financial conditions that should help sustain the expansion and get us closer to our dual mandate goals. challenges on the horizon when i think about the road ahead, my number one goal is to keep the expansion on track. this is how we will keep unemployment low and bring inflation back to 2 percent. i will be watching closely at how both domestic and broader, global developments unfold. at present, slowing global growth and geopolitical uncertainty pose particular challenges. in its latest world economic outlook report, the international monetary fund downgraded its projection for global growth and highlighted downside risks. 3 slower global growth reduces demand for our exports and puts a dampener on both u. s. inflation and growth prospects. and these aren ’ t just projections for the future — we ’ re seeing manifestations of slowing growth around the world now. germany, the uk, and china are all experiencing slowdowns, and the euro area is of particular concern. in response, the european central bank and several other central banks have either adjusted, or indicated they will adjust 2 / 3 bis central bankers'speeches their monetary policy stance to support their economies. these concerns about global growth are compounded by broader geopolitical uncertainty. the risk of a no - deal brexit for the uk is looming large, the political situation in italy remains fraught, political tensions continue in hong kong, and argentina ’ s economy is coping with a debt crisis. on our own shores, concerns around trade policy with china are adding to an uncertain picture. my contacts in the business community have said this is making them more cautious about investment. the effects of this angst are already showing up in the investment numbers. an additional fly in the ointment, if you will, is the recently released downward revision for gdp growth covering last year and an announced estimate of a sizable downward revision to payroll employment. one implication

of these revisions is that the economy ’ s underlying momentum was already somewhat less robust than previously thought, even before recent developments pointed to a less rosy outlook. the path forward so what will the response from the fed be to all of these developments? our role is to navigate a complex and at times ambiguous outlook to keep the economy growing and strong. as events unfold and conditions evolve, it ’ s critical we understand which developments are mere bumps in the road and those that will affect the outlook in a material way over the longer term. that means maintaining a data - dependent approach that takes into account the risks and uncertainty that are weighing on the economy. i will continue to consult everything from very granular data about individuals ’ experiences of employment conditions, through to the macro projections for global growth. we need to consider all of the information available and be flexible in our response. conclusion low inflation is indeed the problem of this era. the current outlook of moderate growth, low unemployment, but stubbornly low inflation is a reflection of the broader economic picture — the july rate adjustment an appropriate response to ease financial conditions and support the economy. how the u. s. outlook evolves in the future is fundamentally tied to the fortunes of the economies around the world. as i look ahead, i ’ m keeping a keen eye on all the data, both domestic and global, and the implications for our economy. with an uncertain outlook, vigilance and flexibility are essential for achieving our dual mandate goals of maximum employment and price stability. persistently low inflation, heightened uncertainty, and global cross - currents make this a particularly challenging time for monetary policy, and my laser focus is on doing the best we can to support a strong economy and achieve our 2 percent inflation goal. thank you. 1 jerome h. powell, challenges for monetary policy, speech delivered at the “ challenges for monetary policy ” symposium, sponsored by the federal reserve bank of kansas city, jackson hole, wyoming, august 23, 2019. 2 see the fomc ’ s statement on longer - run goals and monetary policy strategy, as amended effective january 29, 2019. 3 international monetary fund. 2019. world economic outlook update : still sluggish global growth. washington, d. c., july. 3 / 3 bis central bankers'speeches