Powell’s Key Comments on Inflation, Employment Figures

Following the Federal Open Market Committee’s (FOMC) decision to keep the policy rate unchanged and to taper the asset purchases program by $15 billion per month, FOMC Chairman Jerome Powell is delivering his comments on the policy outlook, and notably inflation and employment:
Following is a compilation of Jerome Powell’s comments:

“We understand that people with lower incomes are affected more by inflation.”

“We will use our tools to make sure high inflation doesn’t become a permanent feature.”

“Wages is a key measure of how tight the labor market is.”

“We have to be humble about what we know about this economy.”

“We want to see further development of the labor market in the absence of another COVID spike.”

“People are still staying out of the labor market in part due to COVID.”

“There is room for a whole lot of humility here on maximum employment.”

“We have high inflation and we have to balance that with our employment goals.”

“We are in a complicated situation.”

“We hope to get more clarity over the first half of next year.”

“When we reach maximum employment, it’s very possible inflation test will already be met.”

“We are not evaluating the liftoff test today.”

“Liftoff test is clearly not met on employment goal.”