Summary of Jerome Powell holds press conference after Fed hikes rates 75bps

00:00:00 - 00:55:00

Jerome Powell, chairman of the Federal Reserve, announced that the Fed will raise interest rates by 75bps in order to restore price stability. This move is in response to increasing inflation and increasing economic growth.

• 00:10:00 Jerome Powell, the Chairman of the Federal Reserve, said that the Fed is committed to returning inflation to two percent and that they have the tools and resolve to do so. He also said that without price stability, the economy does not work for anyone. Powell also said that the Fed is moving their policy stance purposefully to a level that will be sufficiently restrictive and reduce the size of their balance sheet.
• 00:15:00 In a press conference following the Federal Reserve's decision to raise interest rates by 75bps, Chairman Jerome Powell noted that growth in consumer spending has slowed, partly due to reduced real disposable income and tighter financial conditions. He also mentioned that activity in the housing sector has weakened significantly, due to higher mortgage rates. Higher interest rates and slower output are also weighing on business fixed investment. Inflation remains well above the Fed's 2% target, although job growth is robust and wage growth is elevated. However, pressure on prices remains evident across a broad range of goods and services. The Fed is highly attentive to the risks that high inflation poses to both sides of its mandate, and is committed to returning inflation to its 2% objective.
• 00:20:00 The Federal Reserve raised interest rates by a quarter point, citing increasing inflation and slowing economic growth. In response to the news, Jerome Powell said that the Fed is still focused on reducing inflation to 2% and is taking forceful and rapid steps to do so. Powell believes that the labor market is cooling off, wage growth is flattening out, and inflation is high, so the Fed will need to keep rates high for some time in order to achieve their goals.
• 00:25:00 Jerome Powell, Chairman of the Federal Reserve, announced that the Fed plans to raise rates again in the near future, but they are mindful of the potential for inflation to increase. Powell also discussed the current economy and the various factors that could contribute to a recession.
• 00:30:00 In his press conference following the Federal Reserve's rate hike, Fed Chairman Jerome Powell discussed how they arrived at their decision, their expectations for inflation, and their risk management considerations. Powell also clarified that the rate hike is a decision per meeting, and that there is still room for further rate hikes.
• 00:35:00 Jerome Powell, chairman of the Federal Reserve, announced that the Fed will continue to raise interest rates, and is expecting inflation to reach 2 percent within the next few years.
• 00:40:00 In his press conference following the Federal Reserve's decision to raise rates by 75bps, Chairman Jerome Powell explains that the economy is resilient and that the odds favor a recession due to the high unemployment rate and slow GDP growth. Powell also notes that the Federal Reserve's policy is forward-looking and does not know the future lags.
• 00:45:00 Fed chair Jerome Powell says that the goal of the Fed is to slow the economy and put pressure on inflation, which will eventually lead to a stronger job market. Powell says that while there is no painless way to do this, the goal is to get rates up to the point where they're putting meaningful downward pressure on inflation. He suggests that inflation High inflation will eventually lead to a weaker job market, but it is up to the public to be patient and see the benefits of lower inflation.
• 00:50:00 The Federal Reserve raised interest rates by 75bps, saying that they are "meaningful" to those who lose their jobs and that they are setting the economy up for another long period of expansion. The Fed also said that they are looking for the housing market to "reset" and that it will likely require rates to be at 4.6% next year.
• 00:55:00 Jerome Powell, chairman of the Federal Reserve, announced that the Fed will raise rates by 75bps, in order to restore price stability. This move is in response to increasing inflation and increasing economic growth.