A summary of the headlines from Fed Chair Powell's press conference

<p>Economic Outlook and Monetary Policy:</p><ul><li>The unwinding of the pandemic effects make this cycle unique. We are still learning about how it plays out.</li><li>We may have underestimated balance sheet strength households, businesses. There can still be more of that than we think in terms of savings.</li><li>Don't think there's been a structural change in consumption.</li><li>Risks are getting more balanced on doing too much versus doing too little.</li><li>Until now, concern was not doing enough on rates. Now we are still trying to gain confidence in an appropriate stance.</li><li>In future, it may be that the labor market becomes more important for inflation.</li><li>Wages are not the principal driver of inflation so far.</li><li>September reading on employment cost index it was very close to internal expectations.</li><li>Wage increases have really come down significantly over the last 18 months.</li><li>We are focused on looking at data and giving ourselves a little more time now to parse it in order to decide policy stance.</li><li>Within a range of estimates of the neutral rate, and policy is restrictive.</li><li>The public believes that inflation will come down. That's critical in winning the battle.</li><li>Inflation a door in a good place. There is no crack in that armor.</li><li>We are committed to getting inflation back down to our target, and we will.</li><li>Letting higher inflation expectations get embedded is a prescription for misery.</li><li>We've come far enough on policy that wrists are now more two-sided.</li><li>We feel like we are on a path to make more progress on inflation.</li><li>It may take some time for inflation to come down.</li><li>Inflation progress will come in lumps, be bumpy.</li></ul><p>Interest Rates and Monetary Policy Tools:</p><ul><li>We don't have any reason to think these rate hikes are materially changing that picture.</li><li>We've been working a lot with financial firms to make sure they have good funding plans.</li><li>We would never look at long-term treasury rates in isolation; we look at them as part of a broader picture.</li><li>On new regulations, we will come to a package that has broad support.</li><li>Reserves are not even close to scarce at this point.</li><li>QT may be playing a relatively small role in rising longer-term rates.</li><li>We are not considering changing paystub balance sheet runoff.</li><li>Policy was restrictive, and we see it affects.</li><li>We are proceeding carefully.</li><li>We are close to the end of the cycle.</li><li>We have come very far with this rate hike cycle.</li><li>We are going to look at the full range of economic data, including financial conditions.</li><li>We are going meeting by meeting.</li><li>We are seeing elevated potential growth.</li><li>As we approach the next meeting, we will be talking about how we process the data.</li><li>We tried to be transparent in our thinking.</li><li>The efficacy of the dot plot decays during inter-meeting.</li></ul><p>Inflation and Economic Impact:</p><ul><li>High inflation is painful for people.</li><li>This has been a resilient economy.</li><li>See effects of higher rates on housing market, surveys on durables buying.</li><li>It can have implications on monetary policy.</li><li>We aren't confident financial conditions are restrictive enough.</li><li>We are not confident yet we have achieved a sufficiently restrictive stance of policy.</li></ul><p>Uncertainty and Future Policy Decisions:</p><ul><li>This is one reason we have slowed the process down this year.</li><li>We have to make policy under great uncertainty.</li><li>Still very hard to say the length of lags of policy.</li><li>Supply side gains have really been helping, but those things will run their course.</li><li>I still believe and colleagues also that it is likely we will need to see slower growth, softening in labor market conditions.</li><li>That’s very welcome.</li><li>We have been very gratified that we’ve made significant progress without a spike in unemployment.</li><li>The best thing we can do for the U.S. is to fully restore price stability, with the least damage we can.</li><li>If we reach a judgment we need to tighten, we will.</li><li>We are attentive to an increase in longer-term yields.</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.