Here's an important line from Powell:
- If we do see inflation coming down much more quickly, that will play into our policy setting, of course
- If inflation comes down faster, we will incorporate that into our policy
- It will not be appropriate for us to cut rates thsi year, according to our currently outlook
He also said that a lower terminal rate in Fed funds priced into markets doesn't worry him because it comes about due to the market's belief that inflation will move down more quickly than anticipated. Markets are showing inflation coming down much quicker, he said, while noting the Fed has a different view.