Powell speech: Focus is on moving policy stance to become restrictive enough, not on rate cuts
|FOMC Chairman Jerome Powell comments on the policy outlook after the Federal Reserve's decision to raise the policy rate by 50 basis points to the range of 4.25-4.5% following the December policy meeting.
Key quotes
"Expect a very large drop in inflation next year, but the jump-off point at beginning of the year is higher."
"Drop in inflation will come from goods sector and by the middle of next year from housing services."
"For the non-housing services sector, that is the key one that needs to get into better balance."
"We want strong wage increases, but consistent with 2% inflation."
"Right now wages are running well above that consistent with 2% inflation."
"Our focus is on moving our policy stance to become restrictive enough, it's not on rate cuts."
"I wouldn't see us considering rate cuts until FOMC is confident inflation moving down in a sustained way."
"There are no rate cuts in the SEP."
"Hard to say how the end of zero-Covid policy in China will affect US inflation."
"China faces very challenging situation on reopening."
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