More from Powell – firnly committed to getting inflaction back down to 2%

Federal Reserve Powell interview, earlier post is here: Fed Chair Powell says factors outside the Fed’s control may mean a hard landing More now, highlights via Reuters: process of getting inflation down to fed’s 2% goal will ‘include some pain’ one thing we really cannot do is to fail to restore price stability ultimately it would be more painful if we don’t deal with high inflation and let it get entrenched allowing high inflation would mean a much deeper downturn we think it would be appropriate for there to be additional 50 bps rate hikes at next 2 fed meetings if things get better than we expect we’re prepared to do less; if worse, we’re prepared to do more “you’ve seen this committee adapt to the incoming data and the evolving outlook. and that’s what we’ll continue to do.” there are pathways to a soft landing with perfect hindsight, would been better for us to have raised rates sooner asked about labor market remarks, says “when i said unhealthy, what i really meant was that there’s an imbalance between demand and supply, and companies can’t find workers.” the committee and i are firmly committed to getting inflation back down to 2% labor demand and supply imbalance a ‘significant part of the inflationary story’ we want is wages that are consistent with 2% inflation asked what he is thinking in five words or less, says “get inflation back under control” That final point is historic. It may well be the first time ever a central banker has said anything in 5 words or less.