Fed Chair Powell
- Nearly all FOMC participants expect it will be appropriate to raise rates somewhat further by year end
- Seeing some effects of tightening but it will take time to see full effects
- Labor market remains very tight but nominal wage growth showing signs of easing, job vacancies have declined
- Longer-term inflation expectations appear to remain well anchored
- Tighter credit likely to weight on economic activity but extent remains uncertain
- We will continue to make our decisions meeting by meeting
- Reducing inflation is likely to require a period of below-trend growth
The US dollar is a touch higher on these comments but there’s no big departure from what he said in the press conference.
The implied probability of a July 26 Fed hike is at 74% up from 69% yesterday.