- Even after pausing, need to stay flexible then tighten further if conditions call for it
- Need continued gradual rate hikes until we see convincing evidence inflation is falling to 2% in a sustainable, timely way
- Tightening policy too little is the top risk
- Tightening too much or too fast risks weakening the labor market more than necessary
- Should not lock in a peak Fed policy rate or precise rate path
- There has been some progress, need to see slower inflation in services
- Little sign of improvement in core services ex housing inflation
- Need a better balance in labor market to bring inflation back to 2%
This is a decidedly different tone than Powell struck at the last FOMC.