More from Fed's Powell: Supply-side constraints much more durable than expected

More from Fed's Powell:

• Fed needs to be nimble in light of the war in Ukraine.
• US financial system robust enough to deal with Ukraine situation
• US banks do not lack capital.
• Supply-side constraints much more durable than expected
• 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 we are experiences is nothing like we have experienced in decades
• Inflation is also different as coming from goods sector.
• Main focus Fed has is conducting policy to return US to price stability while preserving the expansion
• Fed is humble about fact it cannot call with confidence a turn in inflation
• We are hoping for relief on inflation.
• Our job is to achieve price stability one way or the other.
• We think we need to engage in a series of rate increases and let our balance sheet shrink
• There may be unintended effects of ejecting Russia from SWIFT
• There are concerns over shortages of palladium and corn
• There would be no direct effects on the US economy from Russian sanctions
• Price of oil depends on where Ukraine war goes
• US financial markets are functioning well. Great deal of liquidity
• We are in ongoing contact with major central-bank colleagues.
• Enormously helpful to understand the perspective of other central banks on the Ukraine situation.
• We will return balance sheet to a size relative to our economy
• Most of the FOMC now thinks we are at maximum employment
• inflation is also too high in the service sector.
• On the balance sheet, it would take something in the range of three years to get to where we want to get to.
• After we set balance sheet reduction course, we may speed up or slow down, but something in the range of three years.
• We are watching global markets, dollar funding markets for stresses as a result of war, but markets are functioning right now.