Fed Chair Jerome Powell, when asked about the topic of inflation at an IMF panel, noted that the Fed is no longer counting on inflation coming back down, as these expectations of supply-side easing have been let down in the past. Powell noted that, of course, it would be great if supply-side pressures eased and inflation came back down, but emphasised the Fed's focus on getting interest rates back to neutral "expeditiously" in order to be prepared either way.
Additional Takeaways:
"We have a job to do regarding demand."
There are more job openings than unemployed people.
"We've got a demand/supply imbalance in the US labor market and elsewhere".
"We have seen some tightening in financial conditions".
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