Powell, governor of the US Federal Reserve
Below are the highlights from US Federal Reserve Governor Jerome Powell’s press conference:
Jerome Powell reads the declaration of interest:
- The Fed has the tools to bring inflation back to target.
- Price stability is one of the very important goals of the US Federal Reserve.
- Without price stability, we will not achieve our goals.
- The US Federal Reserve’s Monetary Policy Committee has decided to raise interest rates by 0.50%, to reach 4.50%.
- The US Federal Reserve sees fit to continue raising interest rates.
- The US economy has slowed significantly.
- Raising interest has a negative impact on economic activity and business investment.
- Despite the rate hike, labor market conditions remain solid.
- Inflation has slowed in recent months, but we want strong evidence of a downward trend.
- Members of the US Federal Reserve are aware of the problems that high inflation poses to citizens.
- The Fed has an obligation and will do whatever it can to bring inflation back towards target over time.
- The range of target interest rates has been increased to bring inflation back towards target.
- The economic forecasts issued do not mean that they are the next decisions of the Fed.
- Decisions to tighten monetary policy will take time to have an impact, especially regarding inflation.
- The US Fed has a strong commitment to bring inflation back to target.
- The US Federal Reserve is doing its best to achieve the goals of inflation and optimal labor market exploitation.
The chairman of the US Federal Reserve answers questions from reporters:
- Monetary policy has been tightened sharply this year and aims to bring inflation back towards its long-term target.
- Interest should continue to be generated.
- We have raised rates significantly and are currently in a narrowing position.
- The pace of rate hikes during upcoming meetings will depend on economic data.
- Fed members will keep interest rates high until they are sure that inflation has taken a sustainable downward curve.
- Labor market conditions are very strong, the economy is still adding jobs at a rapid rate, and wages are very high.
- Current economic conditions require the US Federal Reserve to continue raising interest rates and keeping them high for some time.
- Current data, especially labor market conditions, rule out an economic recession scenario.
- We expect unemployment to rise as monetary policy continues to tighten despite strong labor market conditions.
- The Fed would like to see more evidence of lower inflation.
- The current monetary policy aims to continue monetary tightening to bring inflation back to the set target.
- The US Federal Reserve will not consider cutting rates until it is certain that inflation is falling sustainably.
- Easing of epidemic restrictions in China could impact inflation.
- China is facing a difficult challenge regarding the epidemiological situation.
- The waves of coronavirus around the world will have a major impact on economic activity around the world.
- Low inflation is welcomed by the US Federal Reserve.
- We expect a sharp drop in inflation over the next year, especially as the supply chain crisis resolves.
- There are some initial signs of a decline in inflation, but we would like to see more evidence of that.
- The US Fed cannot rely on one month’s data alone.
- Inflation is much higher than the target and this requires a lot of effort from us to get back towards the target.
- We don’t expect an economic downturn right now.
- There will be a slowdown in the labor market due to the rate hike.
- The US Federal Reserve will succeed in bringing inflation back to its 2% target.
- The US Federal Reserve would never consider changing its inflation target, and now is not the time to do so.
- The US Federal Reserve will maintain its 2% inflation target and use all tools to bring it back to its target.
- The objective of price stability is very important and work must be done to restore it rapidly.
- The US Federal Reserve is committed to achieving its inflation target and optimizing the job market.
- Labor market conditions are very strong, so the Fed is currently focused on targeting inflation.
- Forecasts are for slowing growth, rising unemployment and falling inflation.
- We didn’t expect any recession.
- The US Federal Reserve will not cut rates until it is confident that inflation is falling sustainably.
