Powell: War, lockdowns add to hot inflation

Fed Chairman, Jerome Powell, is delivering his comments on the monetary policy outlook at a press conference following the FOMC’s decision to hike the policy rate by 50 basis points in May.

Key quotes

“Ukraine war, China lockdowns both likely to add to headline inflation.”

“Both issues also likely to limit progress on supply chain issues being resolved.”

“Both Ukraine and Russia situations could make the supply chain situation worse.”

“Russia, China situations are both negative shocks.”

“For now, we are focused on doing the job we need to do on demand.”

“Supply-side issues put the central bank in a difficult situation.”

“Need to get labor supply and demand in better balance, no particular goal on the right number of job vacancies.”

“What we would like to see is progress on wages, inflation.”

“Policy works through interest-sensitive spending and asset prices broadly.”