BREAKING: Powell speech (live)

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

SHORT-TERM US INTEREST-RATE FUTURES UP AFTER FED'S POWELL SPEECH, AS TRADERS KEEP BETS ON NO MORE RATE HIKES

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