- Some moderation seen in compensation but not enough
- Needs to see continued moderation in inflation before his outlook changes
- Recent trend in inflation 'encouraging' but need to be confident inflation is declining
- Fed will need to keep 'tight stance' on policy for some time to slow activity further in 2023
- Says he is not seeing signals of a quick decline in inflation, prepared for a longer fight
This isn't materially different than what he said before the FOMC and non-farm payrolls. Officials have long warned that they wanted to keep rates higher for longer, it's just that previously the market didn't believe it.
