Powell: Balancing The Two Goals Is A Risk Management Thing

Q on how the Fed would balance the two goals if in tension:

• A: It's a risk management thing, can't reduce it to an equation. Ultimately, it's about risk management. You want to be in a position to act to cover the full range of plausible outcomes. the risk appears to be skewed toward higher inflation. We need to be in a position to act if in case it becomes appropriate to do so. We think we will be. Judgmentally, too, it's appropriate to be patient. It's appropriate for us to see what the labor market and what the economy looked like when they heal further. ... we think it will involve in a way that will mean low inflation. Bottlenecks are abating a little, they haven't gotten better overall.
• "We don't think it's time to raise rates now. If we do conclude it's necessary to do so - we will be patient - but we won't hesitate."