More from Powell: Wants to see more progress on inflation

More from Fed’s Powell:

• wants to see more progress on inflation
• did not see much progress on core inflation last year
• the luxury of being able to wait for progress on inflation given the strong economy
• labor supply from immigration came down sharply in H2 last year. Expect more of that going forward.
• Have to see how supply and demand and labor matchup
• Making clear progress on housing services inflation but not there yet
• Last few jobs report have shown significant job creation, may have tipped up at and of year.
• Offer a note of caution on today’s CPI reading. We target PCE inflation which is a better measure
• We will know what PCE readings are late tomorrow after PPI data
• The dot plot is NOT forward guidance.
• If DOGE cut $1 trillion off spending, hard to say how it would affect the economy.
• Best thing we can do is to achieve price stability, maximum employment
• Will tell House financial services committee should anyone from DOGE tried to access Fed systems.
• We control access to our payment systems very carefully
• Commercial real estate has lots of embedded losses but it does not seem to be getting worse
• The markets are not pricing in higher inflation, but may be pricing in the risk of it
• Increase in LT rates is mostly not about inflation or Fed policy

This article was written by Greg Michalowski at www.forexlive.com.