Fed's Powell: Jobs report was strong, need to do further interest rate increases

This is a developing story.

Federal Reserve Chairman Jerome Powell is speaking at The Economic Club of Washington, D.C. Signature Event coming up in the next moments.

Key notes

The jobs report was certainly stronger than anyone expected.

The strong jobs report shows you why we think this will be a process that takes a significant period of time.

Expect 2023 to be a year of significant declines in inflation. 

We probably need to do further interest-rate increases.

If data were to continue to come in stronger than expect, would certainly raise rates more.

2% inflation is a global standard and not something the Fed is looking to change.

Fiscal authorities are concerned about the debt limit.

The debt limit debate can only end with congress raising it, which has to happen.

Congress needs to raise debt ceiling in timely fashion

If debt ceiling isnt raised no one should think fed can shield economy from effects.

I am not actively contemplating the sale of securities.

It will be a couple of years before the fed's balance-sheet decline comes to an end.

The US is ‘just at the beginning’ of the disinflation process.

Worries most about when disinflation will take hold in larger services sector, also concerned about outside events.

‘Base case is that it will take time, more rate increases, to finish the process’ .

This cycle is different from past cycles, hard to predict.

Significant progress on inflation expected this year.

We are going to react to data.

We may need to do more if we continue to get strong labour mkt or higher inflation reports.

EUR/USD update

The US Dollar is sinking and EUR/USD has rallied hard as follows: