Fed’s Powell: Jobs report was strong, need to do further interest rate hikes

Federal Reserve Chairman Jerome Powell is speaking in his first public appearance since Friday’s strong jobs report for January.

Economists, on average, were expecting 185,000 job gains, which would have been the slowest pace of growth in more than two years, and for the jobless rate to increase to 3.6%.

And while economists say it was likely the January number was heavily influenced by seasonal factors and will be adjusted downward, it’s still likely too hot for the Fed’s liking, Joe Brusuelas, principal and chief economist for RSM US, told CNN Business last week.

Key Quotes

The jobs report was certainly stronger than anyone expected.

The strong jobs report shows you why we think this will be a process that takes a significant period of time.

We probably need to do further interest-rate increases.

Significant progress on inflation expected this year.

We are going to react to data.

We may need to do more if we continue to get strong labour market or higher inflation reports.

We expect 2023 to be a year of significant declines in inflation.

We probably need to do further interest-rate increases.

If data were to continue to come in stronger than expect, would certainly raise rates more.

2% inflation is a global standard and not something the Fed is looking to change.

Fiscal authorities are concerned about the debt limit.

If debt ceiling isnt raised no one should think fed can shield economy from effects.

I am not actively contemplating the sale of securities.

It will be a couple of years before the fed’s balance-sheet decline comes to an end.

The US is ‘just at the beginning’ of the disinflation process.

Worries most about when disinflation will take hold in larger services sector, also concerned about outside events.

‘Base case is that it will take time, more rate increases, to finish the process’ .

This cycle is different from past cycles, hard to predict.

The debt limit debate can only end with congress raising it, which has to happen.

Congress needs to raise debt ceiling in timely fashion