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Powell Starts With Prepared Statement

FED
  • Powell begins the press conference with his prepared statement, directly addressed "to the American people", saying "inflation is much too high, and we understand the hardship it is causing. We are moving expeditiously to bring it back down."
  • "It is essential we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all." "The labor market is extremely tight and inflation is much too high."
  • Shrugs off Q1 GDP (as did the FOMC Statement), saying underlying momentum remains strong, as figure largely reflected "swings in inventories and net exports" which carry "little signal for future growth".
  • Describes "brisk" expansion of household consumption and business investment, and the labor market continuing to strengthen, with improvements "widespread".
  • Labor supply remains "subdued".
  • Inflation remains "well above our longer run goal of 2%". Aggregate demand is strong and bottlenecks are limiting production. Supply disruptions have been larger and longer-lasting than anticipated. Price pressures have broadened.

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