FOMC Chairman Jerome Powell comments on the policy outlook after the Federal Reserve’s decision to raise the policy rate by 25 basis points to the range of 4.5-4.75% following the first policy meeting of 2023.<\/p>\n\n\n\n
Key Quotes<\/strong><\/p>\n\n\n\n “Very difficult to manage the risk of doing too little on rates.”<\/p>\n\n\n\n “We don’t want inflation springing back.”<\/p>\n\n\n\n “We have no desire to overtighten, but we have tools that would work on that if we do.”<\/p>\n\n\n\n “It would be very premature to declare victory on inflation.”<\/p>\n\n\n\n “Until we see all aspects of inflation coming down, we still have a lot of work to do.”<\/p>\n\n\n\n “We can now say for first time that disinflationary process has started, we see it in goods sector.”<\/p>\n\n\n\n “But that’s around 1\/4 of the PCE Price Index.”<\/p>\n\n\n\n “We see disinflation in the pipeline for housing.”<\/p>\n\n\n\n “We expect to see that disinflation process will be seen soon in the core services ex-housing, but we don’t see it yet.”<\/p>\n\n\n\n “Labor market will probably important to bring that aspect of inflation down.”<\/p>\n\n\n\n “We’re talking about a couple more rate hikes to get to appropriately restrictive stance.”<\/p>\n\n\n\n “We are not very far from that level.”<\/p>\n\n\n\n “Policy is restrictive, trying to judge about how much is restrictive enough.”<\/p>\n\n\n\n “It is a good thing that disinflation so far has not come at expense of labor market.”<\/p>\n\n\n\n “But this disinflationary process is in early stages.”<\/p>\n\n\n\n “In housing services, we expect inflation to continue moving up but then moving down as new leases come in lower.”<\/p>\n\n\n\n “But in core services ex-housing we don’t see disinflation yet.”<\/p>\n\n\n\n “It’s gratifying to see disinflationary process underway, with continued strong labor market.”<\/p>\n\n\n\n “Employment Cost Index and Average Hourly Earnings have abated somewhat, although still fairly elevated.”<\/p>\n\n\n\n “We see wages moving down.”<\/p>\n\n\n\n “By many many indicators job market is still very strong.”<\/p>\n","protected":false},"excerpt":{"rendered":" FOMC Chairman Jerome Powell comments on the policy outlook after the Federal Reserve’s decision to raise the policy rate by 25 basis points to the range of 4.5-4.75% following the first policy meeting of 2023. Key Quotes “Very difficult to manage the risk of doing too little on rates.” “We don’t want inflation springing back.” …<\/p>\n","protected":false},"author":13,"featured_media":51257,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[4707,37,36],"tags":[6885,6868,7664,7164],"class_list":["post-79326","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-breaking-news","category-forex-markets","category-market-updates","tag-fed","tag-fomc","tag-interest-rate-hike","tag-powell"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/79326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=79326"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/79326\/revisions"}],"predecessor-version":[{"id":79330,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/79326\/revisions\/79330"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/51257"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=79326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=79326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=79326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}