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Powell speech: Another unusually large increase could be appropriate at next meeting

FOMC Chairman Jerome Powell is commenting on the policy outlook following the Federal Reserve's decision to raise the policy rate by 75 basis points to the range of 2.25-2.5%.

Key quotes

"Reducing balance sheet plays important role."

"Over coming months looking for compelling evidence of inflation coming down."

"We are looking for compelling evidence inflation coming down over next few months."

"Pace of increases depends on incoming data, outlook for economy."

"Another unusually large increase could be appropriate at next meeting."

"We will communicate our thinking as clearly as possible."

"Likely will be appropriate to slow pace of increases as rates get more restrictive."

"Economy often evolves in unexpected ways."

"Further surprises could be in store."

"We will strive to avoid adding to uncertainty."

"We expect a period of below-trend economic growth."

"Such outcomes necessary to achieve price stability."

"Process is likely to involve period of lower growth, softening labor market

About Jerome Powell (via Federalreserve.gov)

"Jerome H. Powell first took office as Chair of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. He was reappointed to the office and sworn in for a second four-year term on May 23, 2022. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028."

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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