Fed's Powell: I don't see the labor market as a source of inflation

FED'S POWELL: INFLATION ELEVATED, IN PART REFLECTING ENERGY PRICE INCREASE POWELL: CURRENT POLICY STANCE APPROPRIATE POWELL: MIDDLE EAST EVENTS CONTRIBUTES TO UNCERTAINTY POWELL: NEAR-TERM INFLATION EXPECATIONS HAVE RISEN *POWELL: HOUSING SECTOR HAS REMAINED WEAK *POWELL: LABOR DEMAND HAS CLEARLY SOFTENED AS WELL *POWELL: PART OF SLOWER JOB GROWTH REFLECTS LOWER IMMIGRATION *POWELL: IN NEAR TERM, HIGHER ENERGY PRICES WILL BOOST INFLATION

FED CHAIR POWELL: WE WILL STAY THE COURSE UNTIL INFLATION RETURNS TO TARGET, ACKNOWLEDGING THAT EVENTS KEEP EMERGING THAT PUSH COSTS HIGHER AND THAT REACHING 2% COULD BE VERY COSTLY — BUT THE GOAL IS TO GET THERE OVER TIME WHILE INFLICTING THE LEAST POSSIBLE DAMAGE. POWELL: THE UNEMPLOYMENT RATE IS QUITE CLOSE TO ITS NATURAL LEVEL, THOUGH THE LABOR MARKET DOESN'T FEEL STRONG TO SOME BECAUSE QUITS AND HIRES REMAIN LOW, WITH FEW NEW OPPORTUNITIES. *POWELL: DOESN'T FEEL LIKE GOOD MARKET FOR THOSE WITHOUT JOBS FED CHAIR POWELL: THE LABOR MARKET IS IN AN UNUSUAL AND UNCOMFORTABLE BALANCE, WITH INFLATION REMAINING THE PRIMARY ISSUE TO ADDRESS; HE EXPECTS TARIFF-DRIVEN INFLATION TO EASE THIS YEAR, WITH THAT MODERATION SET TO BEGIN SOON, AND VIEWS THE CURRENT POLICY STANCE AS WELL… FED'S POWELL Q&A: 'NOT LOOKING TO BE A HIGH-PROFILE DISSIDENT' ON BOARD; BEEN CHALLENGING TO DEAL WITH SIX YEARS OF SUPPLY SHOCKS; 'A DIFFERENT WORLD' #Powell #FOMC #FederalReserve #economy

*POWELL: DON'T SEE CASE FOR MEANINGFULLY RESTRICTIVE POLICY *POWELL: EVERY SUPPLY SHOCK CAN DRIVE UP INFLATION, UNEMPLOYMENT *POWELL: TAKE WARSH AT HIS WORD THAT HE'LL STAND UP TO TRUMP FED CHAIR POWELL: GASOLINE PRICES WILL HINGE ON HOW LONG THE STRAIT REMAINS CLOSED, RAISING THE QUESTION OF WHETHER CONSUMER SPENDING WILL PULL BACK ENOUGH TO OFFSET THE INFLATIONARY EFFECTS — AND IT IS NOT OBVIOUS THAT THIS WOULD WARRANT A POLICY RATE MOVE. POWELL: FED INDEPENDENCE IS AT RISK FED CHAIR POWELL: FED INDEPENDENCE IS ENSHRINED IN LAW — WE HAVE EVEN HAD TO GO TO COURT TO DEFEND IT — BUT IT EXTENDS BEYOND THE LAW AS WELL, REQUIRING THAT THE BOUNDARIES BETWEEN THE TREASURY AND THE FED BE RESPECTED.