Powell opening statement: Inflation is much closer to 2% goal

• Inflation is much closer to 2% goal
• The labor market is not a source of significant inflation pressures
• Total PCE prices likely rose 2.5% in 12 months ending in Dec, with core up 2.8%
• Inflation expectations remain well anchored
• Consumer spending has been resilient
• Investment in equipment has strengthened
• We are attentive to risks on both sides of the mandate
• We are not on any pre-set course
• Median projections are somewhat higher, consistent with higher inflation forecasts
• If inflation is stronger we can dial back policy more slowly

There is no hint about a pause or hiking in the bolded line. It’s either ‘cut fast’ or ‘cut slow’.

• Can ease more quickly if labor market weakens unexpectedly or inflation falls more quickly

There weren’t any big signals in the opening statement.

This article was written by Adam Button at www.forexlive.com.