Fed's Powell: Our policy rate is likely at its peak

post: FED'S POWELL: THE ECONOMY HAS MADE GOOD PROGRESS, INFLATION HAS EASED. post: FED'S POWELL: THE POLICY RATE WELL INTO RESTRICTIVE TERRITORY. post: *POWELL: ECONOMIC ACTIVITY HAS BEEN EXPANDING AT SOLID PACE post: FED'S POWELL: ACTIVITY IN THE HOUSING SECTOR HAS SUBDUED. post: FED'S POWELL: THE LABOR MARKET REMAINS TIGHT.

Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have moderated since early last year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective. In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments. post: Rates unchanged FOMC statement gets a big rewrite. Tightening bias gone, but in a way that says a cut isn’t necessarily imminent. “The Committee does not expect it will be appropriate” to cut “until it has gained greater confidence that inflation is moving sustainably" to 2% pic.twitter.com/Rzs7fFE8hv post: ? FOMC Does Not Expect to Reduce Rates Until It Has "Greater Confidence" Inflation Moving Toward 2% ? FOMC Judges Risks to Achieving Employment, Inflation Goals Moving Into Better Balance ? FOMC: "Any Adjustments" to Rates To Be Based On Incoming Data, Evolving Outlook,…

post: Fed's Powell: We Have Confidence, Looking For Greater Confidence post: FED'S POWELL: WE HAVE SIX MONTHS OF GOOD INFLATION DATA. ON INFLATION DATA, NEED TO MAKE SURE WHAT WE ARE SEEING IS TRUE SIGNAL. post: Fed's Powell: We Don't Think We Necessarily Need To See Weaker Growth For Inflation To Come Down - We Don’t Look At Stronger Growth As A Problem - Seems Likely We Will Achieve Confidence On Inflation post: ? POWELL: ALMOST EVERYONE ON THE COMMITTEE BELIEVES IT WILL BE APPROPRIATE TO REDUCE RATES post: Fed's Powell: We Are Really In A Risk Management Mode - We Don't Know Where Neutral Rate Of Interest Is

post: Powell: If we saw an unexpected weakening in the labor market, that would certainly call for cutting sooner. If inflation was stickier or higher than anticipated, that would argue for moving later. post: Fed's Powell: There Was No Proposal To Cut Rates Today post: Fed's Powell: Economy Is Broadly Normalizing post: FED'S POWELL: I THINK LOWER RENT COSTS ARE COMING, AND WILL FEED THROUGH. LOWER RENTAL INFLATION IS IN EVERYONE'S FORECAST. post: FED'S POWELL: SUPPLY CHAINS NOT YET BACK FULLY TO WHERE THEY WERE.

post: Fed's Powell: I Would Not Say We Have Achieved Soft Landing Yet - Am Encouraged Though By Progress We've Made - We Are Not Declaring Victory - May Still Be A Tailwind On Disinflation From Goods post: FED'S POWELL: THE SUPPLY SIDE HAS BEEN RECOVERING, BUT THAT WON'T GO ON FOREVER. post: FED'S POWELL: A LOT OF THE ECONOMIC GROWTH WE ARE SEEING IS DUE TO POST-PANDEMIC HEALING, WHEN THAT PETERS OUT, OUR RESTRICTIVE RATE WILL SHOW UP MORE SHARPLY. post: *POWELL: LABOR MARKET BY MANY MEASURES IS AT OR NEARING NORMAL post: ? POWELL: WILL PROBABLY TAKE A COUPLE OF YEARS FOR WAGES TO NORMALIZE