Powell: Effects of rate cuts so far only begining to be coming in

Fed's Powell: Implication of Fed forecasts is higher productivity. POWELL: OUR TWO GOALS ARE A BIT IN TENSION POWELL: EVERYONE AT TABLE AGREES INFLATION IS TOO HIGH Fed's Powell: All agree the labour market has softened, and there are further risks. FED POWELL: DISCUSSIONS ARE THOUGHTFUL AND RESPECTFUL WITH STRONG VIEWS, BUT WE COME TOGETHER TO REACH DECISIONS, AND THERE WAS BROAD SUPPORT FOR TODAY’S DECISION.

POWELL: WELL POSITIONED TO WAIT TO SEE HOW ECONOMY EVOLVES Fed's Powell: The "extent and timing" phrase points out that we'll carefully evaluate incoming data. FED POWELL: CONSUMER SPENDING REMAINS RESILIENT, AI DATA-CENTER INVESTMENT IS SUPPORTING BUSINESS SPENDING, AND THE BASELINE OUTLOOK SEES GROWTH PICKING UP NEXT YEAR. Fed's Powell: Some of the 2026 growth upgrade reflects the shutdown ending. POWELL: WILL GET A GREAT DEAL OF DATA BEFORE JANUARY MEETING

*POWELL: TREASURY PURCHASES MAY REMAIN ELEVATED FOR FEW MONTHS Fed's Powell: Reserve management purchases may remain elevated for a few months to alleviate money market pressures. Thereafter, we expect purchases to decline. Fed's Powell: Standing repo operations are a critical tool to ensure the fed funds rate remains in the target range. Fed's Powell: Fed removed aggregate limit on standing repo operations.

POWELL: SOME PEOPLE FEEL WE SHOULD STOP HERE AND WAIT FED POWELL: SOME THINK WE SHOULD PAUSE AND WAIT, WHILE OTHERS THINK WE SHOULD CUT ONCE OR MORE. Fed's Powell: The unemployment rate may only tick up one, two more tenths. Fed's Powell: Don't expect a sharper downturn in employment with rates in a plausible range of neutral. Fed's Powell: We have made progress this year in non-tariff related inflation.

*POWELL: GRADUAL LABOR MARKET COOLING JUSTIFIED RATE CUT TODAY Fed's Powell: We think there's a negative 20,000 in payrolls per month. ?*POWELL: WE THINK JOB GAINS OVERSTATED BY 60K IN RECENT MONTHS Fed's Powell: Evidence is growing that services inflation has come down, and goods inflation is entirely due to tariffs. Fed's Powell: Inflation has come in a touch lower.

POWELL: DOESNT FEEL LIKE A HOT ECONOMY Fed's Powell: The tick up in the Fed funds rate says we're at ample reserves. Fed's Powell: We got to ample reserves a little faster than we had thought we would. Fed's Powell: Frontloading next few months of purchases to get through tax season. FED POWELL: WHEN BOTH GOALS ARE EQUALLY AT RISK, POLICY SHOULD BE AT NEUTRAL.