Fed Chair Powell statement: Reiterates that the central bank is moving expeditiously to bring inflation down, Fed has resolve to do it; economy is resilient

INFLATION:

• Fed is moving expeditiously to bring inflation down, Fed has resolve to do it.


• Over the coming months, Fed is looking for compelling evidence that inflation is coming down, pace of rate hikes will depend on data and outlook for economy.


• Another large rate increase could be appropriate at the next meeting, likely will be appropriate to slow pace of increases as rates get more restrictive.


• Price pressures are broad.


• Inflation well above goal.


• Although prices for some commodities have eased, there is still additional upward pressure on inflation.

LABOUR MARKET:

• Labour market is extremely tight, inflation is much too high.


• Job growth is slower, but robust


• Labour demand remains very strong, supply remains subdued


• Wage growth is elevated

ECONOMY:

• Fed expects a period of below trend economic growth.


• Economy is resilient


• Powell says growth in consumer spending has slowed significantly


• Business fixed investment looks to have declined in Q2

BALANCE SHEET:

• Powell says the Fed is continuing process of significantly reducing its balance sheet.

27 Jul 2022 - 19:30- Fixed IncomeImportant- Source: Newswires