Fed Chair Powell delivered prepared remarks on The Global Economy At the International Monetary Fund Debate on the Global Economy today.
Nick Timarios at the WSJ as some details: Fed’s Jerome Powell Seals Expectations of Half-Point Rate Rise in May“It is appropriate in my view to be moving a little more quickly” to raise interest rates than the Fed has in the recent past, Mr. Powell said Thursday. “I also think there’s something in the idea of front-end-loading” the removal of stimulus, he said.
“It’s too hot. It’s unsustainably hot. It’s our job to get it to a better place where supply and demand are closer together.”And from Jeff Cox at CNBC: Powell says taming inflation ‘absolutely essential,’ and a 50 basis point hike possible for May“I would say 50 basis points will be on the table for the May meeting.”
“Our goal is to use our tools to get demand and supply back in synch, so that inflation moves down and does so without a slowdown that amounts to a recession,” Powell said. “I don’t think you’ll hear anyone at the Fed say that that’s going to be straightforward or easy. It’s going to be very challenging. We’re going to do our best to accomplish that.”
“It’s absolutely essential to restore price stability,” he added. “Economies don’t work without price stability.”