Fed Chair Powell highlights: Fed needs to move from highly stimulative monetary policy

• We need to move away from highly stimulative monetary policy settings
• Mortgage rates going up will probably begin to cool off housing demand
• Housing inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is a significant part of the CPI
• Our policies cannot affect supply-side conditions.
• US economy is very strong. Labor market is extremely tight
• Inflation is well above target.
• We will you flexible in raising interest rates and months ahead.
• Before Russian invasion, Fed was set to raise interest rates in March with every meeting live
• We will proceed carefully in light of Ukraine war
• There could be effects on spending already affects on commodities Commodities Commodities are assets that are either naturally grown or occurring in the environment. Most commonly this includes precious metals such as gold, silver, and palladium.Beyond metals, commodities can also focus on agricultural or industrial goods that are central to manufacturing or other sectors. This includes crude oil, copper, wheat, and others.Relative to other assets, commodities are an extremely complex form of investment, with many similarities and differences to existing products.Commodit Commodities are assets that are either naturally grown or occurring in the environment. Most commonly this includes precious metals such as gold, silver, and palladium.Beyond metals, commodities can also focus on agricultural or industrial goods that are central to manufacturing or other sectors. This includes crude oil, copper, wheat, and others.Relative to other assets, commodities are an extremely complex form of investment, with many similarities and differences to existing products.Commodit Read this Term
• we can't know how large were related effects will last.
• I do think still appropriate to raise interest rates by 25 basis points in March
• Fed will not finalize balance sheet plan at this meeting.
• If inflation/growth persists, we would be prepared to move more aggressively with a 50 basis point rise at a meeting or meetings
• There needs to be congressional action on crypto currencies

The initial comments suggest the Fed will indeed raise rates by 25 basis points but would increase that to 50 basis points if needed. The Fed will move carefully.