Comments from Powell in Portugal

  • Yet to see inflation stay near goal on a sustained basis
  • Moderate wage growth suggests jobs market not excessively tight
  • Estimates on neutral rate of unemployment may be even more uncertain today with inflation less responsive to low joblessness
  • Flatter Phillips Curve suggests it is possible impact on inflation of unemployment below natural rate for extended period 'might not be large'
  • US economy is performing very well
  • Job market likely to strengthen further
  • Fiscal stimulus expected to boost demand over the next few years

Upbeat comments for sure but he's still skeptical on inflation rising.

"Earlier in the expansion, as the economy recovered, the need for highly accommodative monetary policy was clear," Powell said. "But with unemployment low and expected to decline further, inflation close to our objective, and the risks to the outlook roughly balanced, the case for continued gradual increases in the federal funds rate is strong."