Comments from Powell
- We want to react to genuine trends, not one or two data points or swings in sentiment
- News about trade has been an important sentiment driver
- Incoming data in US has been good, especially on consumer
- Trade risks 'seem to have grown'
- Law is clear that I have a four-year term and I intend to serve it
- The support for the path we took was quite broad
- I don't think waiting too long (to cut) is prominent right now
- Inflation and inflation expectations 'dropped', we find that notable
- We need to be really strong on 2% inflation
- There was not much support for cutting rates now
- All but 1 thought it would be better to see more before cutting
- We expect to learn if these risks will weigh upon the outlook
- We don't know how credible a 4% inflation target would be
At the last meeting, Powell was brushing aside low inflation, saying it was transitory. Now he's saying that he wants to be 'really strong' on 2% inflation.
