Fed Chair Jerome Powell said in the opening statement of his usual post-Fed meeting press conference that the Fed is moving expeditiously to lift interest rates and that the Fed has resolve to restore price stability, reported Reuters. The US economy has been through a lot and is resilient, Powell continued, noting that it is essential to bring inflation down. The current picture is that the labour market is extremely tight and inflation is too high, he stated. 

Powell said the Fed thinks that ongoing interest rate increases are appropriate and that the Fed is also in the process of significantly reducing the size of its balance sheet. Activity in the housing sector appears to be softening, he continued, noting that the recent tightening of financial conditions ought to temper demand. 

The labour market has remained extremely tight and wage growth elevated, Powell stated, while labour supply has remained subdued and demand for labour strong. The Fed expects supply and demand conditions in the labour market to come into better balance and then temper wage gains, the Fed Chair noted.