Fed's Powell: Fed not considering changing pace of balance sheet runoff

(Updated - November 1, 2023 2:49 PM EDT)

(Updated - November 1, 2023 2:47 PM EDT)

(Updated - November 1, 2023 2:36 PM EDT)

Fed's Powell Begins Press Conference

• Focused on duel mandate
• Without price stability, economy doesn't work
• Stance of policy restrictive
• Given how far we've come, FOMC proceeding carefully
• Full effects of tightening yet to be felt
• Economic activity expanded at strong pace
• Higher rates weighing on business fixed investment
• Labor market still tight, but coming into better balance
• Labor demand still exceeds supply
• Inflation has moderated
• Few months of good data is only the beginning
• Getting to 2% has a long way to go
• Restrictive stance putting downward pressure on economy
• Financial conditions have tightened significantly in recent months
• Powell Begins Q&A
• Long term bond yields
• Committee not confident yet they have achieved goal
• Tighter financial conditions could matter for future rate decisions
• Not confidence we have restrictive stance
• Looking for persistent, material changes in financial conditions
• FOMC hasn't made decision on next move
• Not right that it's difficult to raise after stopping
• Doesn't put recession back into forecast
• Financial conditions have clearly tightening, tough to translate
• Economy has been resilient
• Committee isn't thinking about rate cuts
• Fed focusing on how long policy must remain restrictive
• Question FOMC is asking is should we hike more
• Geopolitical tensions are certainly elevated
• Likely we need to see softer labor market
• Likely we need to see slower growth
• Still may be ground to cover
• Seeing effects of 2022 rate hikes now
• Takes time to get effects into economy
• Efficacy of dot plot decays between meetings
• Fed is going meeting by meeting on decisions
• Fed not considering changing pace of balance sheet runoff

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