Powell Q&A: Before the banking issues, it looked like we would have to raise rates higher

• A couple of weeks ago, we thought we would have to raise terminal rate
• We could think of the banking turmoil as a rate hike, or perhaps more than that
• Some firming refers to our policy rate. I would focus on the words 'may' and 'some'
• It's possible banking issues could have minimal effect or that it could result in significant tightening, we just don't know
• We don't know how significant or sustained this period of credit tightening will be but we think it's quite real
• We don't yet see progress on core services inflation excluding housing
• Disinflation is absolutely occurring
• It would be inappropriate to offer views on needed changes due to SVB
• These aren't weaknesses that are broad through the banking system
• At the end of the day, we will bring 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 down to 2%, no one should doubt that
• Doesn't see similarities to concentration at SVB to commercial real estate at other banks
• If we have to raise rates higher, we will
• Right now we see the likelihood of credit tightening, also notes labor market
• It's hard to see how bank stresses would have improved the likelihood of a soft landing Soft landing A "soft landing" in the economy refers to a situation where economic growth slows down, but does not fall into a recession. This is often the desired outcome for policymakers, as it allows them to make adjustments to the economy without causing widespread job losses or other negative effects associated with recessions.An example of a soft landing in the economy occurred in the United States between the years of 2004 and 2006. During this time, the Federal Reserve raised interest rates to cool do A "soft landing" in the economy refers to a situation where economic growth slows down, but does not fall into a recession. This is often the desired outcome for policymakers, as it allows them to make adjustments to the economy without causing widespread job losses or other negative effects associated with recessions.An example of a soft landing in the economy occurred in the United States between the years of 2004 and 2006. During this time, the Federal Reserve raised interest rates to cool do Read this Term
• We haven't talked about changing balance sheet implementation

The market has turned during Powell's press conference in part because he's stayed hawkish but moreso because Treasury Secretary Janet Yellen said there would be no changes to deposit insurance.