Powell: Households are in very strong shape

FOMC Chairman Jerome Powell is commenting on the policy outlook following the Federal Reserve’s decision to raise the policy rate by 75 basis points to the range of 2.25-2.5%.

Key Quotes

“We understand goal of soft landing is very challenging, has become more so in recent months”.

“I am gratified that markets have been orderly”.

“Going forward, we have seen a slowing in spending, beginnings of perhaps slight lessening in tightness of labour market”.

“From financial stability perspective, we have a well-capitalized banking system”.

“Households are in very strong shape”.

“So from that standpoint on financial stability, you have a decent picture”.

“That’s not to say, lower income households are not suffering”.

“We’re seeing real declines in food consumption”.

“It is our job, unconditionally, to provide price stability”.

“There will likely be some softening in labor market conditions ahead”.