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Powell Says Fed Getting Close To The Level Of Sufficiently Restrictive

FED
  • Q: Are you reacting to looser financial conditions; is the Fed a little behind on inflation; is recent disinflation transitory; how this affects the idea of a soft landing.
  • A: We're getting close to the level of sufficiently restrictive, we laid out today what our best estimates are to get there. It boils down to how long we think the process is going to take. These inflation reports are very welcome but we're realistic about the broader project, we need to be honest with ourselves - 12 month core inflation is 6%, 3 times the 2% target. It's good to see progress but we have a long ways to go to get back to price stability.
  • I wouldn't say that [the soft landing is no longer achievable].

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