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Powell speech: Will not be appropriate to cut rates this year according to our current outlook

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

"My own assessment is that positive growth will continue but at subdued pace."

"The global picture is improving a bit."

"Labor market also remains very, very strong."

"As inflation comes down, sentiment will improve."

"State and local governments are flush, so that will also support."

"Lots of spending coming in construction pipeline."

"Those factors will support positive growth this year."

"We will look at incoming inflation reports."

"We will also be looking at the next Employment Cost Index report, yesterday's one was constructive as it showed wages coming down."

"As accumulated evidence on inflation comes in, that will be reflected in policy over time."

"Financial markets have a very different job to us, our focus is on bringing down inflation."

"We are strongly resolved that we will complete this task."

"Goods inflation has come down pretty fast."

"This is not a standard business cycle, it's unique."

"We can have no certainty in our forecasts."

"Will not be appropriate for us to cut rates this year according to our current outlook."

"If inflation comes down faster, then we will see it, will incorporate into policy."

 

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