Fed's Powell: There Will Not Be a Light Switch Moment on When We Know Inflation is Sustainably Coming Down

tweet at 2:53pm: FED'S POWELL: POLICYMAKERS DID NOT SEE THIS AS A TIME TO PAUSE - https://t.co/wXVagA44VK tweet at 2:58pm: Fed's Powell: - But We Have Not Yet Decided Path Ahead - A Pause is Not Something the FOMC is on the Point of Deciding Right Now - 3-Month Core PCE Inflation Measure Are Quite Low Now tweet at 2:58pm: Fed's Powell: - My Own View is You Are Not Going to Have Sustainable Return to 2% in Core Ex Housing Sector Without Increased Labor Slack - Most Forecasters Would Say Unemployment Will Probably Rise a Bit tweet at 2:59pm: Fed's Powell: - See Path to Ease Inf. to 2% Without Big Economic Drop - Continue to Think There’s a Path to a Soft Landing - We Don’t yet See Weakening in the Labor Market - It May Well Be That It Will Take More Slowing in the Economy Than We Expect, but That's Not My Base Case tweet at 3:02pm: Fed's Powell: - My Own Assessment is That Positive Growth Will Continue but at Subdued Pace - That's My Forecast for This Year - But the Global Picture is Improving a Bit - Labor Market Also Remains Very, Very Strong - As Inflation Comes Down, Sentiment Will Improve

tweet at 2:46pm: Fed’s Powell: - Disinflation Outside Of Core Serv. Ex-Hsng 'Credible' - Many Factors Driving Inflation - Until We See All Aspects of Inflation Coming Down, We Still Have a Lot of Work to Do - We Can Now Say for First Time That Disinflationary Process Has Started tweet at 2:48pm: Fed's Powell: - We See It in Goods Sector - But That's Around 1/4 of the PCE Price Index - We See Disinflation in the Pipeline for Housing - We Expect to See That Disinflation Process Will Be Seen Soon in the Core Services Ex Housing, but We Don't See It Yet tweet at 2:50pm: POWELL: WE'RE TALKING ABOUT A COUPLE MORE RATE HIKES TO GET TO APPROPRIATELY RESTRICTIVE STANCE tweet at 2:51pm: FED'S POWELL: ASKED IF FED POLICYMAKERS TALKED ABOUT A PAUSE, SAID WE SPENT A LOT OF TIME TALKING ABOUT PATH AHEAD - https://t.co/wXVagA44VK tweet at 2:52pm: FED'S POWELL: CONGRESS MUST RAISE DEBT CEILING - https://t.co/wXVagA44VK

tweet at 2:43pm: POWELL: WE HAVEN'T MADE A DECISION YET ON TERMINAL RATE tweet at 2:44pm: Fed’s Powell: - Seps in March Could Be Higher Than December, Could Be Lower, Depends on Data - Could Certainly Be Higher Than What We Though in December - If Data Comes in Weaker, Will Make Data-Dependent Decisions - Very Difficult to Manage the Risk of Doing Too Little on Rates tweet at 2:45pm: Fed’s Powell: - We Don't Want Inflation Springing Back - Very Difficult to Manage the Risks of Doing Too Little on Rates - We Have No Desire to Overtighten, but We Have Tools That Would Work on That if We Do - The Job is Not Fully Done tweet at 2:45pm: Fed’s Powell: - Inflation is Core Services Ex Housing is Still Running at 4% - In Other Sectors, You Have a Credible Story on Disinflation - Would Be Very Premature to Declare Victory on Inflation - Don't Feel A Lot Of Certainty About May FOMC Meeting tweet at 2:46pm: FED'S POWELL: WE STILL HAVE A LOT OF WORK TO DO UNTIL WE SEE ALL ASPECTS OF INFLATION COMING DOWN.

tweet at 3:07pm: Fed’s Powell: According To Current Outlook, Will Not Be Appropriate For Rate Cuts This Year $DXY $USD #FOMC tweet at 3:08pm: FED'S POWELL: MARKETS EXPECT INFLATION TO COME DOWN QUICKER THAN WE DO. tweet at 3:08pm: Fed's Powell: - We See Continued Subdued Growth, No Recession, Inflation Coming Down Slowly - We Have a Different Forecast From Markets - I Don't See Us Cutting Rates if Our Outlook Comes True; if Inflation Comes Down Faster Than We Expect That Will Play Into Our Policy Decisions tweet at 3:11pm: Fed's Powell: - I Don't See Signs of a Wage Price Spiral - Agree With Brainard That No Wage-Price Spiral Seen - But Once You See It, It's Too Late - We Cannot Allow That to Happen - More Disinflation Could Give a Boost to Economic Activity tweet at 3:13pm: Fed's Powell: - Once Inflation Easing, Should See Cons. Sentiment Boost - Very Reasssuring That Short and Long Term Expectations Are So Well Anchored, That's Helpful to Getting Inflation Back Down - We Monitor Financial Conditions Carefully

tweet at 3:13pm: Fed's Powell: - Financial Conditions Have Mostly Been Unchanged Since December - It's Important Markets Do Reflect Tightening We Are Putting in Place - We Are Just Going to Have to See if Our Forecast or Market's on Pace of Inflation is Right