“Federal Reserve Chairman Jerome Powell’s Interest Rate Decision and Press Conference Updates”

Does it come:

• 03 May – 21:17:21 [RTRS] – POWELL: THERE IS A SENSE WE ARE MUCH CLOSER TO THE END THAN THE BEGINNING

This is the last quarter of an interest rate increase for the time being.

The Fed thinks it’s done raising interest rates. She clearly sees how her tightening starts working through the economy, labor market and inflation. The economy is weak (mild recession), the labor market is strong, inflation is stubborn, the housing market is in bad shape and the banking sector is sound and resilient.

Says Fed Chairman Jerome Powell in his interest rate decision press conference today, with the last quarter increase for the time being? With the exception of those banks, all the markets mentioned will tip over. The Fed now first wants to see how its interest rate policy works out, now that the effects are becoming noticeable, according to the central bank. Especially crunching credit.

Oh yes, the prices hardly react in contrast to the previous interest rate decisions. Here is first the notice of the interest rate decision itself at 8:00 PM.

Below you can follow the Fed press conference live from 8:30 PM to 9:30 PM maximum. Rough copy, these are the most important and literal quotes from chairman Jerome Powell in that pressco. So much? Yeah, Powell isn’t into chit-chat.

• 03-May-2023 20:31:01 [RTRS] – POWELL: CONDITIONS IN BANKING SECTOR HAVE BROADLY IMPROVED
• 03-May-2023 20:31:05 [RTRS] – POWELL: U.S. BANKING SYSTEM IS SOUND AND RESILIENT
• 03 May – 20:33:11 [RTRS] – POWELL: ACTIVITY IN HOUSING SECTOR REMAINS WEAK
• 03 May – 20:33:21 [RTRS] – POWELL: LABOR MARKET REMAINS ‘VERY TIGHT’
• 03 May – 20:33:52 [RTRS] – POWELL: NOMINAL WAGE GROWTH HAS SHOWN SIGNS OF EASING
• 03 May – 20:34:27 [RTRS] – POWELL: INFLATION PRESSURES CONTINUE TO RUN HIGH
• 03 May – 20:35:48 [RTRS] – POWELL: WE ARE SEEING THE EFFECTS OF POLICY TIGHTENING, PARTICULARLY HOUSING AND INVESTMENT
• 03 May – 20:35:58 [RTRS] – POWELL: WILL TAKE TIME FOR FULL EFFECTS OF MONETARY RESTRAINT TO BE REALIZE
• 03 May – 20:36:29 [RTRS] – POWELL: STRAINS FROM BANKING SYSTEM IN MARCH IS RESULTING IN EVEN TIGHTER CONDITIONS
• 03 May – 20:40:21 [RTRS] – POWELL: BROADLY THE STAFF FORECAST WAS FOR A MILD RECESSION
• 03 May – 20:41:15 [RTRS] – POWELL: DEBT LIMIT ISSUES IS A FISCAL MATTER, FOR CONGRESS TO DEAL WITH
• 03 May – 20:46:24 [RTRS] – POWELL: DON’T HAVE AN AGENDA FOR FURTHER BANK CONSOLIDATION
• 03 May – 20:46:35 [RTRS] – POWELL: BANK CONSOLIDATION HAS BEEN GOING ON FOR A WHILE
• 03 May – 20:48:14 [RTRS] – POWELL: IT’S GOOD POLICY THAT WE DON’T WANT LARGEST BANKS DOING BIG ACQUISITIONS, BUT ACQUISITION OF FRC IS AN EXCEPTION, FOLLOWS THE LAW ON LEAST-COST BID
• 03 May – 20:51:49 [RTRS] – POWELL: WILL REVISIT THAT AT JUNE MEETING
• 03 May – 20:53:52 [RTRS] – POWELL: WE ARE TRYING TO REACH AND THEN STAY AT FOR AN EXTENDED PERIOD A SUFFICIENTLY RESTRICTIVE STANCE TO BRING DOWN INFLATION
• 03 May – 20:54:19 [RTRS] – POWELL: WE HAVE TO BALANCE RISK OF NOT DOING ENOUGH AGAINST RISK OF SLOWING ECONOMIC ACTIVITY TOO MUCH
• 03 May – 20:55:48 [RTRS] – POWELL: REAL RATES ARE AROUND 2%, MEANINGFULLY ABOVE NEUTRAL RATE
• 03 May – 20:56:15 [RTRS] – POWELL: POSSIBLY AT SUFFICIENTLY RESTRICTIVE LEVEL, MAY NOT BE FAR OFF
• 03 May – 20:57:10 [RTRS] – POWELL: WE HAVE A GOAL OF GETTING TO 2%, WILL TAKE SOME TIME AND WILL NOT BE A SMOOTH PROCESS
• 03 May – 21:00:53 [RTRS] – POWELL: IF HAVE RECESSION WOULD HOPE IT WOULD BE MILD
• 03 May – 21:02:23 [RTRS] – POWELL: DO NOT THINK WAGES ARE PRINCIPLE DRIVER OF INFLATION
• 03 May – 21:03:54 [RTRS] – POWELL: AS GOODS PIPELINES GET BACK TO NORMAL, WILL SEE PRICES, CORPORATE MARGINS COMING DOWN
• 03 May – 21:08:09 [RTRS] – POWELL: BIG BANK DEPOSIT FLOWS HAVE REALLY STABILIZED
• 03 May – 21:12:13 [RTRS] – POWELL: 3 LARGE BANKS WERE AT HEART OF EARLY-MARCH STRESS, NOW ALL RESOLVED
• 03 May – 21:09:54 [RTRS] – POWELL: FED CANNOT PROTECT ECONOMY, FINANCIAL SYSTEM FROM THE DAMAGE A DEBT DEFAULT WOULD INFLICT