Federal Reserve Powell interview, earlier post is here:
More now, highlights via Reuters:
- process of getting inflation down to fed's 2% goal will 'include some pain'
- one thing we really cannot do is to fail to restore price stability
- ultimately it would be more painful if we don't deal with high inflation and let it get entrenched
- allowing high inflation would mean a much deeper downturn
- we think it would be appropriate for there to be additional 50 bps rate hikes at next 2 fed meetings
- if things get better than we expect we're prepared to do less; if worse, we're prepared to do more
- "you’ve seen this committee adapt to the incoming data and the evolving outlook. and that’s what we’ll continue to do."
- there are pathways to a soft landing
- with perfect hindsight, would been better for us to have raised rates sooner
- asked about labor market remarks, says "when i said unhealthy, what i really meant was that there’s an imbalance between demand and supply, and companies can’t find workers."
- the committee and i are firmly committed to getting inflation back down to 2%
- labor demand and supply imbalance a 'significant part of the inflationary story'
- we want is wages that are consistent with 2% inflation
- asked what he is thinking in five words or less, says "get inflation back under control"
That final point is historic. It may well be the first time ever a central banker has said anything in 5 words or less.
