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More from Fed's Powell:
- wants to see more progress on inflation
- did not see much progress on core inflation last year
- the luxury of being able to wait for progress on inflation given the strong economy
- labor supply from immigration came down sharply in H2 last year. Expect more of that going forward.
- Have to see how supply and demand and labor matchup
- Making clear progress on housing services inflation but not there yet
- Last few jobs report have shown significant job creation, may have tipped up at and of year.
- Offer a note of caution on today's CPI reading. We target PCE inflation which is a better measure
- We will know what PCE readings are late tomorrow after PPI data
- The dot plot is NOT forward guidance.
- If DOGE cut $1 trillion off spending, hard to say how it would affect the economy.
- Best thing we can do is to achieve price stability, maximum employment
- Will tell House financial services committee should anyone from DOGE tried to access Fed systems.
- We control access to our payment systems very carefully
- Commercial real estate has lots of embedded losses but it does not seem to be getting worse
- The markets are not pricing in higher inflation, but may be pricing in the risk of it
- Increase in LT rates is mostly not about inflation or Fed policy
