Powell, Governor of the US Federal Reserve
The following are the highlights of the press conference of US Federal Reserve Governor Jerome Powell:
Jerome Powell reads the statement of interest:
- The Fed has the tools to bring inflation back to target.
- Price stability is one of the very important goals of the US Federal Reserve.
- Without price stability, we will not achieve our goals.
- The Monetary Policy Committee of the US Federal Reserve decided to raise interest rates by 0.50%, to reach 4.50%.
- The US Federal Reserve believes it is appropriate to continue raising interest rates.
- The US economy has slowed significantly.
- Raising interest has a negative impact on economic activity and business investments.
- Despite the rate hike, conditions remain strong in the labor market.
- Inflation has slowed over the past months, but we want strong evidence of a downward trend.
- Members of the US Federal Reserve are aware of the problems that high inflation poses to citizens.
- The Fed has an obligation and will do everything it can to bring inflation back towards the target over time.
- The target interest rate range has been raised to bring inflation back towards the target.
- The issued economic forecasts do not mean that they are the next Fed decisions.
- Decisions to tighten monetary policy will take some time to make an impact, especially with regard to inflation.
- The US Fed has a strong commitment to bringing inflation back to target.
- The US Federal Reserve is doing its best to achieve the goals of inflation and optimal exploitation of the labor market.
The US Federal Reserve Chairman answers questions from journalists:
- Monetary policy has tightened strongly this year, and aims to bring inflation back towards its long-term target.
- It is appropriate to continue to raise interest.
- We’ve raised rates significantly, and we’re in a tightening position right now.
- The pace of rate hikes during the upcoming meetings will depend on economic data.
- Fed members will keep interest rates high until they are sure that inflation has taken a downward curve in a sustainable manner.
- Conditions in the labor market are very strong, the economy is still adding jobs at a high pace, and wages are very high.
- The current economic conditions require the US Federal Reserve to continue raising interest rates, and to maintain high interest rates for a while.
- The current data, especially the conditions in the labor market, make us rule out the scenario of an economic recession.
- We expect unemployment to rise as monetary policy continues to tighten despite strong labor market conditions.
- The Fed would like to see more evidence of lower inflation.
- The current monetary policy aims to continue monetary tightening to bring inflation back to the set target.
- The US Federal Reserve will not consider cutting rates until it is sure that inflation is falling sustainably.
- The easing of epidemic restrictions in China may have an impact on inflation.
- China is facing a difficult challenge regarding the epidemiological situation.
- Corona waves around the world will have a strong impact on economic activity around the world.
- Low inflation is welcomed by the US Federal Reserve.
- We expect a strong decrease in inflation over the next year, especially with the resolution of the supply chain crisis.
- There are some initial signs of declining inflation, but we’d like to see more evidence of that.
- The US Fed cannot rely on just one month’s data.
- Inflation is much higher than the target and this requires us a lot of effort to return towards the target.
- We do not expect an economic recession at this time.
- There will be a slowdown in the labor market due to the rate hike.
- The US Federal Reserve will succeed in returning inflation to its target of 2%.
- The US Federal Reserve would never consider changing its inflation target, and now is not the time for that.
- The US Federal Reserve will maintain its inflation target at 2% and will use all tools to bring it back to its target.
- The goal of price stability is very important and work must be done to restore it quickly.
- The US Federal Reserve is committed to achieving the inflation target and optimizing the labor market.
- Labor market conditions are very strong, hence, the Fed is currently focused on the inflation target.
- Forecasts are for growth to slow, unemployment to rise, and inflation to fall.
- We did not expect any recession.
- The US Federal Reserve will not cut rates until it is sure that inflation is falling sustainably.
