Powell Q&A: Powell: We are not actively considering 75 bps rate hikes

• We expect job creation to slow
• Wages are running high
• We like to think that wage 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 will moderate, that's our expectation
• Vacancies are at an extraordinarily high level
• We have a good chance for a 'soft or softish landing', cites strong labor market and balance sheets
• It will not be easy to achieve a soft landing
• If we expect what we expect to see then we'll have 50 bps hikes on the table at the next two meetings
• We will not hesitate to go above neutral if needed
• We are looking at very broad measures of financial conditions
• Supply side issues put central banks in a difficult situation
• We are absolutely prepared to move policy to restrictive levels if needed
• We're a long way from neutral now, we're moving there expeditiously and will continue to do so
• If we do believe it's necessary to go beyond neutral, we won't hesitate
• There may be some pain in getting inflation back down to 2% but it's a bigger pain not dealing with it
• There's a labor shortage

The US dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term fell and risk trades jumped when Powell said that they're not actively considering a 75 bps hike. The market was looking for a 50% chance of that a few days ago, 22% after the Fed statement and now just 10%.

That was as clean of a headline trade as I've seen in a long while.