Powell speech: No bright red line on what neutral rate is

Jerome Powell, Chairman of the Federal Reserve System, is delivering his remarks on the monetary policy outlook at a press conference following the FOMC's decision to hike the policy rate by 50 basis points in May.

Key quotes

"We are raising rates expeditiously to a broad range, plausible levels of neutral."

"We are raising rates expeditiously to a broad range of neutral."

"No bright red line on what neutral is."

"Will be making a judgment about whether we've done enough."

"We will not hesitate to go higher if we have to on rates."

"If that path involves levels higher than neutral, we will not hesitate to go there."

"If higher rates are required, we will not hesitate."

"We don't see strong evidence that inflationary psyschology has changed."

"Short-term inflation expectations are quite elevated."

"We don't see a wage-price spiral."

"We know we need to expeditiously move policy rate up to more normal levels and keep going if we have to."

About Jerome Powell (via Federalreserve.gov)

"Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term*. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028."

"*Note: On February 4, 2022, the Federal Reserve Board named Jerome H. Powell as Chair Pro Tempore, pending Senate confirmation to a second term as Chair of the Board of Governors."