Chair Powell Asked If His View Of The Terminal Rate Has Changed

Chair Powell also notes that " We think it's time to just go to a meeting by meeting basis and not provide the kind of clear guidance that we had provided on the way to neutral."

• Next Q: Are market expectations enough to bring inflation back to 2%? Has your view of the terminal rate changed since June?
• A: Hard to say with any confidence what the economy will be like in 6-12 months, so can't predict rate range for next year. There's significantly more uncertainty about the path ahead. The only point I have for you is the June SEP, which sees 3-3.5% by end-year, and further rate increases in 2023. We'll update at the September meeting.
• It has evolved over the course of the year I think for all participants, as we learn how persistent inflation's going to be. By the time of the September meeting, we'll have seen significant amount of reading about economic activity and geopolitical developments. Who knows? I think we'll see quite a lot of data and make our decision at that meeting based on that data.