Powell speech: The US economy is very strong and well positioned to handle tighter policy

The US economy is very strong and is well positioned to handle tighter monetary policy, Fed Chair Jerome Powell stated on Wednesday in the post-Fed meeting press conference. 

Additional Remarks:

• "We will do all we can to achieve our dual goals."
• "We always aim to provide as much clarity as we can about our intentions."
• "In the current circumstances, we think it helpful to provide more clarity than usual on policy."
• "When I offered guidance of 50 bps hike at the last meeting, I said that if data came in worse than expected, we would consider a more aggressive move."
• "The CPI data and inflation expectations data last week made us realize 75 bps was the way to go."
• "We want to see a series of declining monthly inflation readings."
• "We had expected to see inflation flattening out by now."
• "But inflation surprised to the upside."
• "We thought strong action was needed at this meeting."
• "We decided we needed to do more frontloading."
• "The next meeting could well be a decision between 50 bps and 75 bps."
• "It is desirable to be up to neutral on interest rates."
• "That would get us to a more normal range, and then would have optionality."
• "The Summary of Economic Projections really says that we want to see policy at modestly restrictive level at end of this year."
• "That is generally a range of 3 to 3.5%."
• "For much of the yield curve now, real rates are positive, but that's not true for the short end."