Powell opening statement: We expect to reduce the size of our balance sheet

• Notes 'extremely tight' labor market
• Labor supply remains subdued
• Wages rising at fastest pace in many years
• FOMC participants expect labor market to remains strong
• Inflation remains 'well above' goals
• Supply disruptions have been larger and longer-lasting than anticipated
• Higher energy prices are driving up overall 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
• Latest surge in oil will add additional pressure
• A long expansion is only possible in an environment of price stability
• Participants continue to see inflation risks as weighted to the upside
• No one knows with any certainty where the economy will be a year or more from now
• Trimming balance sheet will play an important role in firming policy. Will make announce at 'a coming meeting'

The Fed is setting up an interesting debate on how quickly to tighten the balance sheet at the next FOMC meeting.