Fed Chairman Jerome Powell he said in his post-FOMC meeting press conference on Wednesday that the US economy is very strong and therefore the Fed expects to reduce the size of its balance sheet. Omicron’s slowdown was mild and brief, Powell added, noting that labor markets are extremely tight and improvements in labor markets have been widespread. Labor demand remains very strong, he added, and labor supply is subdued and the Fed expects the labor market to remain strong. Inflation remains well above the Fed’s target, Powell said.
Featured Statements
“Supply disruptions are larger and longer lasting than expected.”
“Rising energy prices put additional upward pressure on US inflation.”
“Russia’s invasion of Ukraine has added to inflationary pressures.”
“A strong labor market is only possible with price stability.”
“We expect inflation to return to 2.0%.”
“Inflation will take longer to return to our target than initially expected.”
“Reducing the balance sheet will also play an important role in the adjustment policy.”
“The implications of the Russian invasion of Ukraine are highly uncertain.”
“We will strive to avoid increasing uncertainty.”
“We are alert to the risks of further upward pressure on inflation.”
Source: Fx Street
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