Feds Powell: We need to be alert and nimble in making Fed decisions

The testimony from Fed's Powell begins in front of the Senate banking committee.

Some levels at the start of his testimony:

• Dow +78.64 points at 33970
• S&P -0.43 points at 4386.13
• NASDAQ index -98.89 points at 13653.13
• Gold up $0.30 at $1928.65
• Crude oil of $1.06 at $111.67
• Bitcoin $43,168
• 2year yield 1.528%
• 10 year yield 1.875%
• EURUSD 1.1072
• GBPUSD 1.3356
• USDJPY 115.58
• USDCHF 0.9190
• USDCAD 1.2639
• AUDUSD 0.7340
• NZDUSD 0.68033

Headlines from Fed Powell's testimony

• We need to be alert and nimble in making fed decisions
• Rising energy prices will work its way through the US economy
• There will be upward pressure on inflation for a while
• We could see people holding back on spending in the United States.
• This is a great labor market for workers.
• Problem we are facing as high inflation.
• Restoring price stability is the single most important thing we can do.
• I strongly share view that everything we do in fed system needs to be linked to mandate
• For the most part real wages are declining. That is why we have to get inflation under control.
• In hindsight we should have moved earlier to see inflation as longer-lasting.
• "Yes" when asked if he is prepared to do what it takes on inflation
• Sanctions make it difficult for Central Bank of Russia to support the ruble
• An unexpected byproduct of Ukraine war is it will not help with supply chains.
• We have not seen much relief on supply-side
• There is no problem with labor demand.
• We have a labor supply problem.
• Getting past supply chain problems would help on inflation.
• Additional inflation pressure does raise risk of inflation expectations rising. Concern is already lots of upward inflation pressure and this raises risk that could influence inflation expectations.
• Over the course of this year, the Fed will raise rates and allow balance sheet to shrink
• Powell says that he supports a 25 basis point rise in March
• Prepare to raise by more than that in meeting or meetings if inflation doesn't come down.
• Inflation is too high. The Fed will use old tools to bring it down
• Right now we have substantial excess demand.
• Labor market is overheated.
• There is a lot we can do to bring demand down without risking damage.
• Hope to bring economy to level where demand and supply are in sync.
• A $10 rise in oil is about 0.2% on inflation as a rule of thumb
• Fed really doesn't want a wage price spiral.
• We don't want inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term to be entrenched or self-perpetuating.
• Wage increases have been very highest particularly on the lower end
• At next meeting we will set a pace for balance sheet runoff
• We like to have caps so runoff is not volatile.
• Will set runoff so it won't disrupt markets.
• Energy prices will depend on events, will push up inflation in near-term, also effects on growth it all comes down to how persistent energy price is
• To get back to 2% inflation, will need help from supply-side bottlenecks
• We will keep in mind some of the inflation is a strong demand meeting in flexible supply
• We can lower car demand by raising rates and will do that, but ultimately need more semi conductors to get car supply up
• We are on an unsustainable fiscal path. Time to do that is when the economy strong

The testimony ended at 12:25 PM ET.