- Without stable prices, it's hard to maintain maximum employment
- Will need restrictive policy for some time
- Fed starting to see some improvement in inflation data
- Expect inflation will continue falling this year and next, though progress may be uneven
- Path of policy rates will depend on how quickly inflation moves towards the 2% goal
- Many people were surprised by the addition of 500K jobs in January
- Combination of a strong labor market and moderating wages/prices has raised hopes for a soft landing
- The Fed is not done raising interest rates
I don't see anything telling in these comments. The Fed will hike another 25 bps at the next meeting and keep watching the data to decide what to do next.