More from Fed's Powell:
- Fed needs to be nimble in light of the war in Ukraine.
- US financial system robust enough to deal with Ukraine situation
- US banks do not lack capital.
- Supply-side constraints much more durable than expected
- Inflation we are experiences is nothing like we have experienced in decades
- Inflation is also different as coming from goods sector.
- Main focus Fed has is conducting policy to return US to price stability while preserving the expansion
- Fed is humble about fact it cannot call with confidence a turn in inflation
- We are hoping for relief on inflation.
- Our job is to achieve price stability one way or the other.
- We think we need to engage in a series of rate increases and let our balance sheet shrink
- There may be unintended effects of ejecting Russia from SWIFT
- There are concerns over shortages of palladium and corn
- There would be no direct effects on the US economy from Russian sanctions
- Price of oil depends on where Ukraine war goes
- US financial markets are functioning well. Great deal of liquidity
- We are in ongoing contact with major central-bank colleagues.
- Enormously helpful to understand the perspective of other central banks on the Ukraine situation.
- We will return balance sheet to a size relative to our economy
- Most of the FOMC now thinks we are at maximum employment
- inflation is also too high in the service sector.
- On the balance sheet, it would take something in the range of three years to get to where we want to get to.
- After we set balance sheet reduction course, we may speed up or slow down, but something in the range of three years.
- We are watching global markets, dollar funding markets for stresses as a result of war, but markets are functioning right now.
