Powell Sees Good Chance Fed Can Normalise Without Significant U/E Increase

Q: What is your message to the American people about when they will start to feel the effect of rate hikes?

• A: We understand the pain involved (with inflation). It's our job to make sure that inflation of that unpleasant high nature doesn't get entrenched. The way we do that is to get supply and demand back in sync. The process of getting there involves higher rates: higher mortgage / borrowing rates.
• It isn't going to be pleasant either, but in the end, everyone is better off, particularly those on fixed incomes and at the lower part of the income distribution. We think we have a good chance to do it without significant increase in unemployment or sharp slowdown. Ultimately we think about the medium and longer term and everyone will be better off if we can get this job done the sooner the better.