Powell speech: Ukraine war, China lockdowns both likely to add to headline inflation

Jerome Powell, Chairman of the Federal Reserve System, is delivering his remarks on the monetary policy outlook at a press conference following the FOMC's decision to hike the policy rate by 50 basis points in May.

Key quotes

"Ukraine war, China lockdowns both likely to add to headline inflation."

"Both issues also likely to limit progress on supply chain issues being resolved."

"Both Ukraine and Russia situations could make the supply chain situation worse."

"Russia, China situations are both negative shocks."

"For now, we are focused on doing the job we need to do on demand."

"Supply-side issues put the central bank in a difficult situation."

"Need to get labor supply and demand in better balance, no particular goal on the right number of job vacancies."

"What we would like to see is progress on wages, inflation."

"Policy works through interest-sensitive spending and asset prices broadly."

About Jerome Powell (via Federalreserve.gov)

"Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term*. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028."

"*Note: On February 4, 2022, the Federal Reserve Board named Jerome H. Powell as Chair Pro Tempore, pending Senate confirmation to a second term as Chair of the Board of Governors."