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Chair Powell Says Likely Some Softening Of Labor Market Conditions

  • Powell also recycles some of this greatest recent hits on "compelling evidence" on inflation; going meeting by meeting, "at some point it will be appropriate to hikes"; restrictive policy for some time; history cautions against prematurely loosening; we're in it until the job is done:
  • "We will be looking for compelling evidence that inflation is moving down, consistent with inflation returning to 2%. We anticipate that ongoing increases in the target range for the federal funds will be appropriate. The pace of those increases will continue to depend on the incoming data and the evolving Outlook for the economy. With today's action, we have raised interest rates by three percentage points this year. At some point as the stance of policy tightens, it will be appropriate to slow the pace of increases while we assess how our policy adjustments affect the economy."
  • "We will continue to make our decisions meeting by meeting and communicate our thinking as clearly as possible. Restoring price stability will require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy."
  • Reducing inflation is likely to require a sustained period of below-trend growth and it will very likely be some softening of labor market conditions. Restoring price stability is essential to set the stage for achieving maximum employment and stable prices over the longer run. We will keep at it until we're confident the job is done."
  • Q & A Begins

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