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Powell speech: History cautions against prematurely loosening policy

FOMC Chairman Jerome Powell comments on the policy outlook after the Federal Reserve's decision to raise the policy rate by 25 basis points to the range of 4.5-4.75% following the first policy meeting of 2023.

Key quotes

"Seeing effects of policy on demand in housing, but will take time for full effects to be realized."

"Will take time for full effects of our actions to be realized."

"These lags fed into our decision to raise by 25 bps today."

"In light of cumulative tightening and lags, Fed continued step-down from last year's fast pace."

"A slower pace allows us to better assess progress toward our goals."

"We will continue to make decisions meeting by meeting."

"Our focus in on using our tools to bring inflation down."

"Reducing inflation is likely to require below trend growth, some softening in labor market."

"History cautions against prematurely loosening policy."

"We will stay the course until job is done."

 

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