In his usual post-Fed meeting press conference, Fed Chair Jerome Powell said on Wednesday that he expects to see progress on inflation in the second half of 2022.
Additional Remarks:
"It's a very, very tight labor market."
"We think there's a pool of people who could come back to labor force, but may not happen quickly."
"I do not expect supply chain issues to be completely worked out by end of year, but do expect progress."
"I expect progress on inflation in the second half of this year."
"We are not making progress, overall, on the supply chain issue."
"We think we are positioned to make changes to our policy to deal with inflation."
"We are positioned to make changes in policy to address the risk of higher inflation."
"We have not made any decision on the size of rate increases."
"That said, we are aware this is a very different expansion than the last one."
"As we work our way through meeting by meeting, we are aware of differences from the last time we raised rates."
"Those differences will be reflected in the policy we implement."
"We are not trying to get inflation below 2%, want inflation expectations well anchored at 2%
"We get to that goal by getting inflation averaging 2% over time."
"Growth this year is forecast to be well above potential."
"The abor market is going to be strong for some time."
"We want inflation back down to 2% in a way that leaves the labor market very strong."
"We want to get inflation back down to 2% but also leave the labor market in a strong position."
"Monetary policy will do its job."
"I don't think the Fed's two goals are in tension."
"A significant threat to the labor market is high inflation."
"High inflation also taking away the benefits of large wage increases."
"We monitor the slope of the yield curve, but we don't control it."
"We take the yield curve into account alongside other considerations."
"The 2s to 10s gap is 'well within range' of normal yield curve slope."
"This is going to be a year in which we move steadily away from highly accommodative policy."
"That will involve ending asset purchases, lifting off and additional rate increases."
"The last thing we will do is allow the balance sheet to run off."
"We will have a couple more meetings about allowing the balance sheet to run off."
"We will then do that as appropriate."
"It's impossible to say exactly how policy will go."
"We will be nimble about this."
"The economy is quite different this time from last tightening cycle."
"All of these things will go into our thinking on policy."
"Asset prices are somewhat elevated."
"I don't think asset prices themselves represent a significant threat to financial stability."
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD extends decline toward 0.6500 after RBA Bullock's presser
AUD/USD is extending losses toward 0.6500 in early Europe on Tuesday. The Aussie Dollar remains offered after the RBA held policy rate. Markets digest the less hawkish policy statement while Governor Bullock's words add to the Aussie's downside.
USD/JPY recaptures 150.00 after the expected BoJ rate hike
USD/JPY extends gains to regain 150.00, as the Japanese Yen stays vulnerable amid a classic 'sell the fact' trading on the hawkish BoJ decision. The BoJ lifted the interest rate by 10 basis points (bps) from -0.1% to 0% for the first time since 2007 and abandoned the YCC framework.
Gold price hangs near one-week low, looks to Fed decision on Wednesday for fresh impetus
Gold price struggles to capitalize on the previous day's bounce from the $2,145 region and oscillates in a range during the Asian session on Tuesday. Hawkish Fed expectations, elevated US bond yields and a bullish USD cap the upside.
Why is the crypto market crashing?
The two most important contribution to the ongoing bull market is the meteoric rise in Bitcoin due to the ETF approval and the sudden interest spike in Solana ecosystem. But the recent move suggests that the upward momentum is dissipating and a correction looms.
Lots of tension ahead of this week's Fed decision
Last week, we got a strong round of US economic data accompanied by hotter US inflation reads. The takeaway of course is that there might be a lot more pressure on the Fed to be looking to scale back its rate cut outlook at this week’s meeting.