Jerome Powell: Strong majority in Fed committee wanted two or more rate hikes

Jun 28, 2023 · 1m 51s

https://www.youtube.com/watch?v=pjqwBywx1Uo

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WE WILL WAIT FOR THE NEXT SET OF EVIDENCE FOR OUR OWN MIGHT WHICH TO CHRISTINE'S POINT AGAIN, WILL BE ONE WHERE WE HAVE A FULL FORECAST. >> THE LABOR MARKET IS REALLY PULLING THE ECONOMY. AND MY COLLEAGUES AND I, AS YOU WILL KNOW, WROTE DOWN IN OUR SEP, TWO MORE ADDITIONAL RATE HIKES. THE MEDIAN WAS QUITE A STRONG MAJORITY, ACTUALLY, WANTED TWO OR MORE RATE HIKES

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AND THE REASON FOR THAT WAS, IF YOU LOOK AT THE DATA OVER THE LAST QUARTER, WHAT YOU SEE IS STRONGER THAN EXPECTED GROWTH, A TIGHTER THAN EXPECTED LABOR MARKET, AND HIGHER THAN EXPECTED INFLATION. THAT TELLS US THAT ALTHOUGH POLICY IS RESTRICTIVE, IT'S NOT -- IT MAY NOT BE RESTRICTIVE ENOUGH, AND IT HAS NOT BEEN RESTRICTIVE FOR LONG ENOUGH. >> SO I DON'T GET WHY YOU DIDN'T

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RAISE RATES AT THE LAST MEETING, ESPECIALLY, I THINK IT WAS A SURPRISE THAT IT WAS A UNANIMOUS DECISION TO HOLD RATES STEADY, WHEN YOU SAID A MAJORITY THINK THAT THEY STILL NEED TO GO FARTHER ON RAISING RATES >> IT'S REALLY JUST -- AS YOU GET CLOSER AND CLOSER TO THE GOAL -- WHAT WE'RE AIMING FOR IS A POLICY THAT'S SUFFICIENTLY RESTRICTIVE TO BRING INFLATION DOWN TO

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2% OVER TIME AS YOU GET CLOSER TO THAT, YOU GET CLOSER TO THE PLACE WHERE THE RISKS BECOME MORE IMBALANCED SO, YOU KNOW, WE DID 475 BASIS POINTS HIKES IN A ROW, STARTING IN JUNE OF LAST YEAR IN DECEMBER, WE MOVED DOWN TO 50 THEN WE DID THREE CONSECUTIVE 25 BASIS POINT HIKES. THIS IS REALLY JUST A CONTINUATION WE'RE GOING TO MOVE THE DECISIONS A LITTLE

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BIT -- MAKE THEME LITTLE BIT, WITH A LITTLE BIT MORE TIME IN BETWEEN THEM. IN AN EFFORT TO GET MORE INFORMATION FROM THE DATA, TO SEE HOW MUCH RESTRAINT IS REALLY COMING FROM THESE -- THROUGH THE PIPELINE, FROM RATE HIKES THAT WE ONLY MADE NOW, IN MANY CASES, SIX, EIGHT, NINE MONTHS AGO. SO THAT'S WHY WE DID IT. >> SO MAYBE IN EVERY OTHER MEETING HIKE

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>> WE HAVE NOT DECIDED THAT. THE ONLY THING WE'VE DECIDED WAS NOT TO RAISE RATES AT THE JUNE MEETING. WE HAVE NOT MADE A DECISION TO GO

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