3:07 p.m. (EST): “Changing our inflation target is something we’re not thinking about. We’re not going to consider that under any circumstances. We’ll use our tools to get inflation back to 2%.”

3:05 p.m. (EST): “Our policy is getting to a pretty good place,” and it’s close to “sufficiently restrictive.” The higher rate “narrows the runway” for a soft landing, but he still thinks it’s possible. 

3:01 p.m. (EST): The November inflation data “clearly do show a welcome reduction” in the pace of inflation. As for core services inflation, excluding housing, “we do have a way to go there.” 

2:47 p.m. (EST): The speed of rate hikes is no longer the most important factor, “it’s not so important to think about how fast we go” now, but where the peak rate ends up. “Then the question will be how long we stay there,” he said. It’s now about where we land, and how long we stay there.  

2:42 p.m. (EST): “We think financial conditions have tightened significantly in the past year,” he said. “Our focus is not on short-term moves, but persistent moves.” He doesn’t consider the policy to be at a sufficiently restrictive policy stance yet. 

2:40 p.m. (EST): While the median Federal Open Market Committee (FOMC) rate projection for 2023 has increased to 5.1% from the previous 4.6% expectation, the projections are not a plan to raise rates, Powell said.

2:36 p.m. (EST): The central bankers need more evidence that inflation is headed lower, he said. In addition, risks to inflation remain to the upside, he added. 

On Wednesday, the U.S. market ended lower by 0.60%. 

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