Powell speech: Balance sheet reduction will be picking up steam

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

"No one can be sure on whether we can achieve a soft landing."

"Balance sheet reduction is working fine, markets have accepted it, and should be able to absorb it."

"Balance sheet reduction will be picking up steam."

"Getting down to new balance sheet equilibrium could take 2 - 2.5 years."

"Markets seem to have confidence in the Fed's commitment to 2% inflation."

"Broader financial conditions have tightened a good bit."

"We're going to get our policy rate to level where we are confident inflation will come down to 2%."

"We'll be watching financial conditions to see they are appropriately tight."

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."