Chair Powell On Fed's Forward Guidance Credibility

Q: Will late decision to go 75 hurt forward guidance credibility?

• A: The overall exercise is we try to provide as much clarity about our policy intentions as possible. I think this year is a demonstration of how well that can work; have done little in hiking rates but financial conditions have tightened. Any guidance is always subject to things working out as we expect.
• We're looking for progress on inflation, it can't go down until it flattens out. If we don't see progress for a long period that could cause us to react. We will see progress at some point and we will act appropriately. This is an unusual situation to get some data late during Blackout, close to our meeting, one that would change the outcome - I've only seen in my 10+ years at the fed something like that once or twice.