Fed’s Powell: Jobs report was strong, need to do further interest rate increases
This is a developing story.
Federal Reserve Chairman Jerome Powell is speaking at The Economic Club of Washington, D.C. Signature Event coming up in the next moments.
Key notes
The jobs report was certainly stronger than anyone expected.
The strong jobs report shows you why we think this will be a process that takes a significant period of time.
Expect 2023 to be a year of significant declines in inflation.
We probably need to do further interest-rate increases.
If data were to continue to come in stronger than expect, would certainly raise rates more.
2% inflation is a global standard and not something the Fed is looking to change.
Fiscal authorities are concerned about the debt limit.
The debt limit debate can only end with congress raising it, which has to happen.
Congress needs to raise debt ceiling in timely fashion
If debt ceiling isnt raised no one should think fed can shield economy from effects.
I am not actively contemplating the sale of securities.
It will be a couple of years before the fed’s balance-sheet decline comes to an end.
More to come…
EUR/USD update
The US Dollar is sinking and EUR/USD has rallied hard as follows: