The worst mistake would be to fail in bringing inflation down

Fed Chair Jerome Powell said in his post-Fed meeting press conference that the worst mistake that the Fed could make would be to fail to get inflation back down, reported Reuters. “We need to restore price stability,” Powell reiterated, adding that the Fed wants to get the job done.

Additional Remarks:

  • “We are not seeing a wage-price spiral.”
  • “We think the public believes we’ll get back down to 2%.”
  • “It’s key that we maintain confidence in the Fed’s ability to get inflation down.”
  • “Clearly inflation is incredibly unpopular and painful.”
  • “It will take some time to get inflation back down.”
  • “We need to make sure the public has the confidence. We have the tools, and they do work, to get inflation down.”
  • “I think our projections meet the test of a softish landing.”
  • “I think we can get a softish landing.”
  • “But events have raised the degree of difficulty.”
  • “There is a much bigger chance that it will now depend on factors outside our control.”
  • “We just don’t know if we can.”
  • “Fluctuations in commodity prices could take the possibility of a softish landing out of our hands.”
  • “If we see data going in a different direction and we will adapt policy.”
  • “This is a highly uncertain environment.”
  • “We are determined and resolved but flexible.”
  • “You couldn’t get this kind of inflation without a change on the supply side.”
  • “On QT, I have no reason to think it will lead to liquidity issues.”
  • “We are watching to see how much rate rises will affect residential investment, house prices.”
  • “House prices might keep going up for a while due to supply constraints.”
  • “Prices in housing may keep going up for a while even when rates are going up.”

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