Powell image May 17 2022
  • Reports that there's broad support for having 50 bps on the table at the next two meetings
  • Expresses uncertainty about the economy
  • Financial conditions overall have tightened significantly
  • We need the supply side to catch up
  • We need to see growth moving down from the very high levels we saw last year, but still positive
  • We need to see clear and convincing evidence that inflation pressures are abating
  • If we don't see that, we'll have to consider moving more aggressively
  • If we do see that happening, we could move at a slower pace
  • The economy is strong and well-positioned to withstand tighter monetary policy
  • Says they're watching China and effects of Ukraine war very closely
  • We don't know where neutral is, we don't know where 'tight' is
  • We will look at changes in the economy and financial conditions at each meeting
  • We won't hesitate to go beyond neutral if needed. We'll go to the point where we can view inflation coming down
  • Inflation is way to high and we're going to bring it down
  • We're not setting policy on the assumption that the supply side will improve
  • We'd still have a strong labor market if unemployment "moves up a few ticks"
  • The economy doesn't work for anyone without price stability
  • There could be some pain involved to restoring price stability
  • We need to see inflation coming down in a convincing way, this is not a time for tremendously nuanced readings on inflation
  • There is a real possibility that globalization will go into reverse to some extent
  • There's an overwhelming need to get inflation under control

Risk assets have legged moderately lower and the US dollar is higher on his comments.