Powell Offers Decision-Making Insights, But Plays Most Cards Close To Chest

In the press conference, Powell repeated several of his talking points in his Congressional testimony (the importance of price stability for maximum employment; potential to hike prior to reaching max employment as an "off-ramp" in case of persistently high inflation; increasing concern over upside inflation risks). So probably not too much new info to glean.

• He sounded unconcerned about Omicron's impact though acknowledged it was a risk. Though noted could impact supply (ie prices) as well as demand.- Avoided any hints as to balance sheet reduction though to be fair they probably didn't consider it that closely this week as was a preliminary decision. Maybe we'll get more in the minutes on Jan 5.
• For Fed watchers, Powell provided an interesting insight into the FOMC's timeline/decision-making process and confirmed that Clarida/Daly etc emerging in mid-November to call for a faster taper was part of a coordinated communications effort.
• As a result of his remarks, worth paying more attention to the Employment Cost Index and JOLTS quits rate going forward (and as always pay attention to rent prices, which Powell cited specifically).