Powell speech: Wages are to some extent being eaten up by inflation

Jerome Powell, Chairman of the Federal Reserve System, is delivering his remarks on the monetary policy outlook at a press conference following the FOMC's decision to hike the policy rate by 50 basis points in May.

Key quotes

"As we raise interest rates, demand moderates."

"Businesses will invest a little less, consumers will spend a little less."

"There may be some pain for people in us getting inflation back down to 2% but bigger pain not dealing with it."

"No one should look at any summary of economic projections as a resting place."

"It's just us adapting to the data and using our tools to deal with it."

"Wages are to some extent being eaten up by inflation."

"We've got to get back to price stability to stop those wages being outpaced by inflation."

"Long expansions are good for labor market."

"The best thing for everyone is to get back to price stability."

About Jerome Powell (via Federalreserve.gov)

"Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term*. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028."

"*Note: On February 4, 2022, the Federal Reserve Board named Jerome H. Powell as Chair Pro Tempore, pending Senate confirmation to a second term as Chair of the Board of Governors."