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

"Financial conditions have tightened quite a bit."

"Shorter-term inflation expectations moved up since last meeting, we don't think those are as indicative."

"Still it's very concerning."

"We don't have a clearly identified way of knowing when inflation becomes entrenched."

"We need to use our tools forcefully but thoughtfully."

"That's why we need to get inflation under control."

"Policy lags are thought to be long and variable, newer literature suggests lags are shorter."

"Financial conditions now react well before policy moves."

"Plenty of economists think that once financial conditions change, effects are faster than before."