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 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.