Fed Chair Jerome Powell said in his post-FOMC meeting press conference on Wednesday that the US economy is very strong and the Fed thus expects to reduce the size of its balance sheet. The slowdown from Omicron was mild and brief, Powell added, noting that labour markets are extremely tight and improvements in labour markets have been widespread. Labour demand remains very strong, he added, and labour supply subdued and the Fed expects the labour market to remain strong. Inflation remains well above the Fed's goal, Powell said. 

Additional remarks:

"Supply disruptions are larger and longer-lasting than expected."

"The surge in energy prices putting additional upward pressure on US inflation."

"Russia's invasion of Ukraine has added to inflation pressures."

"A strong labor market is only possible with price stability."

"We expect inflation to return to 2.0%."

"Inflation will take longer to return to our goal than initially expected."

"Reducing the balance sheet will also play an important role in tightening policy."

"Implications of Russia's invasion of Ukraine are highly uncertain."

"We will strive to avoid adding to uncertainty."

"We are attentive to risks of further upward pressure on inflation."