Powell speech: Too early to know full extent of banking turmoil-related credit tightening

FOMC Chairman Jerome Powell comments on the policy outlook after the Federal Reserve's decision to leave the policy rate unchanged at 5-5.25% following the June policy meeting.

Key quotes

"We are stretching out to a more moderate pace of hiking."

"When we see inflation flattening, and softening, we'll know that tightening is working."

"By taking a little more time on tightening, we reduce the chance of going too far."

"Too early to know full extent of banking turmoil-related credit tightening."

"If we see more of an effect from credit tightening, we will factor that into rate decisions."

"Not seeing a lot of progress on core PCE inflation."

"Want to see core PCE moving down decisively."

"We want to get inflation down to 2% with minimum damage to economy."

"In 2021, inflation was coming from strong demand for goods."

"In 2022 and now in 2023, many analysts believe getting wage growth down is important for getting inflation down."

"Our focus is on getting the policy right."

"The July meeting will be live."

"We do try to be transparent in our reaction function."

"We see housing putting in a bottom, maybe moving up a bit."

"We will see rents filtering into housing services inflation."

"I don't know that housing itself will drive rates picture, but it's part of it."

About Jerome Powell (via Federalreserve.gov)

"Jerome H. Powell first took office as Chair of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. He was reappointed to the office and sworn in for a second four-year term on May 23, 2022. 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."