powell santa 01 December 2022
  • Without price stability, there is no sustained strong jobs market
  • US economy has slowed significantly from last year
  • We've covered a lot of ground, full effects of tightening yet to be felt
  • Higher rates appear to be weighing on business investment
  • Labor market remains extremely tight
  • Inflation remains well-above long run goal of 2%
  • It will take 'substantially more evidence' to give confident that inflation is on a sustainable downward path
  • Participants still see inflation risks as to the upside
  • Stable inflation expectations aren't grounds for complacency
  • We are seeing the effects of higher rates in the most-sensitive areas like housing
  • We still have "some ways to go" on rates
  • We will stay the course until the job is done
  • Historical precedence argues against loosening prematurely

Key line:

"The inflation data in October and November show a welcome reduction. But it will take substantially more evidence to give confidence that inflation is on a sustained downward path."

That and "we still have some ways to go" aren't quite the downshift that many were hoping for.