Comments from Powell in response to questions from the press
Wednesday, 22/03/2023 | 18:41 GMT-0
22/03/2023 | 18:41 GMT-0
A couple of weeks ago, we thought we would have to raise terminal rate
We could think of the banking turmoil as a rate hike, or perhaps more than that
Some firming refers to our policy rate. I would focus on the words ‘may’ and ‘some’
It’s possible banking issues could have minimal effect or that it could result in significant tightening, we just don’t know
We don’t know how significant or sustained this period of credit tightening will be but we think it’s quite real
We don’t yet see progress on core services inflation excluding housing
Disinflation is absolutely occurring
It would be inappropriate to offer views on needed changes due to SVB
These aren’t weaknesses that are broad through the banking system
At the end of the day, we will bring inflation Read this Term
Doesn’t see similarities to concentration at SVB to commercial real estate at other banks
If we have to raise rates higher, we will
Right now we see the likelihood of credit tightening, also notes labor market
It’s hard to see how bank stresses would have improved the likelihood of a soft landing Read this Term
We haven’t talked about changing balance sheet implementation
The market has turned during Powell’s press conference in part because he’s stayed hawkish but moreso because Treasury Secretary Janet Yellen said there would be no changes to deposit insurance.
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