Fed Chair Jerome Powell said on Thursday that what matters for inflation is how long the oil price rise lasts, reported Reuters.
Additional Remarks:
"Right now we have substantial excess demand."
"Labor market is overheated."
"There's a lot we can do to bring demand down without risking damage."
"Hope to bring the economy to a level where demand and supply are in sync."
"$10 rise in oil is about 0.2% on inflation as a rule of thumb."
"We want to get the balance sheet shrinking in a predictable way in the background."
"We really don't want a wage-price spiral."
"We don't want inflation to become self-perpetuating."
"We don't want inflation to be entrenched or self-perpetuating."
"That's why we are moving ahead with rate rises."
"Variant to variant the economy has gotten better at dealing with Covid-19."
"We are embarking on a series of rate increases this year and no doubt beyond."
"We will also shrink the balance sheet."
"At the next meeting, we will set a pace for balance sheet runoff."
"We like to have caps so runoff is not volatile."
"We will set runoff so it won't disrupt markets."