Powell Q&A: Slowing down at this point is a good way to balance risks

• So far seen only tentative signs of moderation in labor demand, wage growth
• Jobs data today was more or less in line with expectations, decline in job openings a positive
• For most workers, wage increases are being offset by inflation
• Initial surge in inflation not related to wages
• Questions about the elasticity supply is an important one the Fed is thinking about
• Hard to pin down the natural rate of unemployment given disruptions
• Fed continues to think job openings versus number of unemployed is important
• It's difficult to forecast inflation now given circumstances remain unusual
• Slowing down at this point is a good way to balance risks
• Still thinks there's a path to a soft or soft-ish landing without a severe recession
• Soft landing scenario plausible but won't speculate on odds
• One risk management tool is to go slower, one is to hold longer
• "I don't want to overtighten"

The excitement in markets continues with the S&P 500 up 1% and the Nasdaq NASDAQ The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass Read this Term up 1.8%. The market is feeling much more comfortable about 50 bps in December and it's now priced at 89% compared to 75% earlier.

Saying "I don't want to overtighten" is a marked change in tone from Jackson Hole and other speeches in Sept/Oct.

Key line:

"We tend to assume things will go back to the way they were just naturally but that doesn’t seem to be happening so far. We are going to have to be humble and skeptical about forecasts I think for some time."

That means that economic data Economic Data Economic data typically comes in the form of news releases that are disseminated daily. This information is extremely valuable to retail and institutional forex traders, given the influence such data has on currency rates.Most of the major economic events that are released are reported by sovereign governments throughout the globe. Moreover, there are several economic data points that are released by private organizations that can also move the market.By and large, when new information becomes a Economic data typically comes in the form of news releases that are disseminated daily. This information is extremely valuable to retail and institutional forex traders, given the influence such data has on currency rates.Most of the major economic events that are released are reported by sovereign governments throughout the globe. Moreover, there are several economic data points that are released by private organizations that can also move the market.By and large, when new information becomes a Read this Term will be more tradable than ever.