Powell speech: If we overtighten, we have tools to support economic activity
|FOMC Chairman Jerome Powell comments on the policy outlook after the Federal Reserve's decision to raise the policy rate by 75 basis points to the range of 3.75-4% following the November policy meeting.
Key quotes
"If we overtighten then we have the ability with our tools to support economic activity."
"On the other hand, if you undertighten, it is a year or two down the road you realize you haven't got inflation under control."
"A mistake in the direction of not tightening enough risks entrenched inflation, bigger employment costs."
"Employment costs of that go up with the passage of time."
"We are now focused on what's the level we need to get rates to."
"I don't know what we'll do when we get there by the way."
"I am trying to make sure our message is clear that we have a ways to go until we have got to a sufficient level on interest rates."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.