Powell comments on Fed’s latest interest rate hike

Jerome Powell said that the US “labour market remains very tight” and that demand still and that demand for labor “substantially exceeds supply of available workers.”

However, the Fed chair did note that the labor market is not as hot as it was last year. “There are some continuing signs that supply and demand in the labor market are coming into better balance.


The labour force participation rate has moved up since last year, particularly for individuals aged 25 to 54 years. Nominal wage growth has shown some signs of easing, and job vacancies have declined so far this year,” Powell said.

Key takeaways from Fed’s policy statement

“Inflation remains elevate, policy-setting committee remains ‘highly attentive’ to inflation risks.”

“Recent indicators suggest economic activity has been expanding at a moderate pace.”

“Committee is strongly committed to returning inflation to its 2% objective.”

“Banking system is sound and resilient.”

“Tighter credit conditions are likely to weigh on economic activity, hiring and inflation, extent to which remains uncertain.”

“Will continue to reduce its bond holdings as described in previously announced plans.”

“Vote in favor of policy was unanimous.”