Powell speech: Very difficult to manage the risk of doing too little on rates
|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
"Very difficult to manage the risk of doing too little on rates."
"We don't want inflation springing back."
"We have no desire to overtighten, but we have tools that would work on that if we do."
"It would be very premature to declare victory on inflation."
"Until we see all aspects of inflation coming down, we still have a lot of work to do."
"We can now say for first time that disinflationary process has started, we see it in goods sector."
"But that's around 1/4 of the PCE Price Index."
"We see disinflation in the pipeline for housing."
"We expect to see that disinflation process will be seen soon in the core services ex-housing, but we don't see it yet."
"Labor market will probably important to bring that aspect of inflation down."
"We're talking about a couple more rate hikes to get to appropriately restrictive stance."
"We are not very far from that level."
"Policy is restrictive, trying to judge about how much is restrictive enough."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.