- The labor market is very strong but is coming back into better balance
- There are signs of gradual cooling in the labor market
- Q1 was notable for a lack of further progress on inflation, that has told us we will need to be patient
- We expect continued growth of 2% or better with the labor market staying strong and moving further into balance
- I expect inflation to move down to lower levels like was saw last year but I would say my confidence in that is lower than it was at the turn of the year
- Headline PPI numbers were higher but the revisions were lower. I wouldn't call it hot, I would call it mixed
- Restrictive policy may take longer but I'm confident we will get inflation back to 2%
- I don't think it's likely that the next move would be a rate hike
- Current rent increases have been low for some time, but that's now showing up in rollover leases. It will show up, the question is when
- We've seen demand for workers cooling off pretty substantially
- You also see wages coming down
He repeated this message once again:
“We did not expect this to be a smooth road, but these were higher than I think anybody expected. And so what that has told us is that we'll need to be patient and let restrictive policy do its work."
Jerome Powell
