FOMC Chairman Jerome Powell comments on the policy outlook after the Federal Reserve's decision to raise the policy rate by 25 basis points to the range of 4.5-4.75% following the first policy meeting of 2023.

Key quotes

"It is a good thing that disinflation so far has not come at expense of labor market."

"But this disinflationary process is in early stages."

"In housing services, we expect inflation to continue moving up but then moving down as new leases come in lower."

"But in core services ex-housing we don't see disinflation yet."

"It's gratifying to see disinflationary process underway, with continued strong labor market."

"Employment Cost Index and Average Hourly Earnings have abated somewhat, although still fairly elevated."

"We see wages moving down."

"By many many indicators job market is still very strong."