The most important remarks said by Jerome Powell regarding the current economic condition and policy outlook:
- THE POLICY-SETTING COMMITTEE IS PROCEEDING CAREFULLY
- GEOPOLITICAL TENSIONS `HIGHLY ELEVATED,' POSE KEY RISKS
- POLICY STANCE IS RESTRICTIVE
- MORE EVIDENCE OF ABOVE-TREND GROWTH, OR THAT LABOR MARKET NO LONGER EASING, COULD WARRANT FURTHER MONETARY POLICY TIGHTENING
- SIGNIFICANT TIGHTENING IN FINANCIAL CONDITIONS WITH HIGHER BOND YIELDS CAN HAVE IMPLICATIONS FOR POLICY; WE REMAIN ATTENTIVE
- THERE MAY STILL BE MEANINGFUL TIGHTENING IN THE PIPELINE
- THE TASK OF BALANCING TOO MUCH TIGHTENING VS TOO LITTLE IS COMPLICATED BY A RANCE OF UNCERTAINTIES
- INFLATION STILL TOO HIGH
- RETURN TO 2% INFLATION LIKELY TO REQUIRE PERIOD OF BELOW-TREND GROWTH, SOME FURTHER SOFTENING OF LABOR MARKET CONDITIONS
- LOWER SUMMER INFLATION READINGS VERY FAVORABLE, SEPTEMBER DATA SOMEWHAT LESS ENCOURAGING
- RECENT DATA SHOWS ONGOING PROGRESS TOWARD INFLATION AND EMPLOYMENT GOALS
TREASURY YIELDS EDGE LOWER AFTER POWELL COMMENTS ON RATES
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05:38 pm BST update
- IT'S POSSIBLE WE ARE GOING INTO A MORE INFLATIONARY PERIOD, BUT IT'S HARD TO KNOW
- IT DOES NOT FEEL LIKE POLICY IS TOO TIGHT.
- HIGHER BOND YIELDS IS A TIGHTENING, AND AT MARGIN COULD REDUCE NEED FOR FED TO TIGHTEN.
- WITH HINDSIGHT, IT IS POSSIBLE THE FED COULD HAVE DONE LESS DURING THE PANDEMIC.
Source: xStation 5
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