Powell: Inflation Overshoot Will Not Be Large Or Permanent

Powell says in Q&A in Jackson Hole that the inflation overshoot will be moderate, "not large" and they will last for some time, meaning "not permanent."

• The new framework does not "predict future meetings" other than "the goals we are seeking to achieve" and should not be seen as formulaic, he says.
• Powell emphasizes that communication to the public about its new framework is essential and that changes represent an evolution and the Fed will be back at it to review operating guides every 5 years.
• For small businesses currently, "it will take more direct aid" going forward.
• "The single most important thing we can do here is support the labor market," Powell said acknowledging that such support would be improved by a whole-of-government effort including fiscal aid. "We need it to be broader than the Fed."