Fed Chair Jerome Powell said yesterday, “this is a time for us to be tightly focused on the time ahead and getting inflation back down to 2%…. What we need to see is inflation coming down in a clear and convincing way… If we don’t see that, we will have to consider moving more aggressively”.
“If that involves moving past broadly understood levels of ‘neutral’ we won’t hesitate to do that,” he added. “We will go until we feel we are at a place where we can say ‘yes, financial conditions are at an appropriate place, we see inflation coming down.'”
“We’ll go to that point. There won’t be any hesitation about that,” he said.
