Powell Emphasizes Terminal Rate Importance Over Pace Of Hikes

In the answer to the first question, Powell reiterates a key point of last week's FOMC press conference (which was seen, on balance, as mildly dovish) - downplaying the pace of hikes and playing up the importance of the terminal level.

• Q: How should the FOMC's June meeting posture be understood?
• A: The decision to hold rates in June and the higher level of rates indicated in the new projections are entirely consistent. The level to which we raise rates is a separate question to how quickly we move. The sense of the Dot Plot is given that how far we've come, it may make sense to move rates higher, but at a more moderate pace. Much as you might do if you're driving 75mph on the highway, then 50bp, then as you try to find your destination, you go slower.