Powell: Prospects of core inflation rising are real; Policy stance in a very good place

*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.

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's Powell: I don't see the labor market as a source of inflation POWELL: PEOPLE NOT SAYING WE NEED TO HIKE NOW FED CHAIR POWELL: WE DO NOT WANT TO CONFUSE MARKETS REGARDING OUR REACTION FUNCTION, ADDING THAT IT'S A WORTHWHILE DEBATE TO BE HAVING — WITH A SOUND ARGUMENT ON THE OPPOSING SIDE AS WELL. FED CHAIR POWELL: CONCERN OVER MONETARY POLICY CREDIBILITY IS NOT WHAT'S DRIVING MY DECISION TO REMAIN IN ROLE, ADDING THAT WARSH POSSESSES THE SKILLS TO PERFORM WELL. POWELL: I WOULD NEVER BE A SHADOW CHAIR POWELL: I WILL BE A GOVERNOR POWELL: I RESPECT THE ROLE OF CHAIR