Comments from Macklem

  • We're seeing a lot of strength in single-family homes
  • We're seeing some signs of excess exuberance but it's not like 2016-2017
  • We will be watching housing closely, we're aware that prices could get stretched and certainly that's a risk we're watching
  • I'm not recommending new measures on housing right now
  • To some extent, the rise in interest rates reflects the success of fiscal and monetary policy
  • Inflation expectations have moved back up to 'more normal' levels
  • The economy will be restructuring even as it's rebounding, it's going to take a considerable amount of time to get a recovery
  • As we get confidence in the strength of the recovery we will be adjusting QE
  • Ending QE is 'some ways off'
  • Yesterday's revisions to core CPI didn't affect our view on inflation
  • Bitcoin doesn't have features of a currency
  • Achieving full employment is an essential part of our inflation mandate

There were some points in his speech that I would have liked to hear questions on. he talked about the 4th industrial revolution, which is automation and digitization and he sounded very downbeat on long-term inflation because of that.