- It is essential we bring down inflation down
- Consumption spending remains strong
- Growth in business fixed investment is softening
- Housing is slowing
- Tightening in financial conditions could continue to temper growth
- Labor market has remained extremely tight
- Wage growth is elevated
- We expect labor supply and demand conditions to come into better balance
- Notes that projections for unemployment over the next two years have moved up
- Since Fed's May meeting, inflation has surprised to the upside; in response to that, we decided to hike 75 bps
- Pace of hikes will depend on incoming data
- Does not expect 75 bps moves to be common. Either 50 or 75 bps seems most likely at next meeting.
Powell put both 50 and 75 bps on the table for the next meeting. The market is pricing in 75 bps at that meeting, which is July 26-27.
The bond market made a move on the bolded comment with yields quickly falling and stocks jumping. It's a bit dovish, I guess.