Powell: If continue to get strong labor market reports, or higher inflation reports, may need to hike rates more than is priced in

tweet at 1:02pm: FED'S POWELL: WE NEED TO BE PATIENT, NOT SEEING DISINFLATION IN SERVICES SECTOR. tweet at 1:03pm: POWELL: U.S. IS ON AN UNSUSTAINABLE FISCAL PATH, THAT WILL NEED TO BE ADDRESSED tweet at 1:06pm: Fed’s Powell: - U.S. "Just at the Beginning" of the Disinflation Process -Not Seeing Disinflation in Housing Yet, but Expect That to Happen in the 2H of This Year -Worry Most About When Disinflation Will Take Hold in the Larger Services Sector, Also Concerned About Outside Events tweet at 1:12pm: Fed's Powell: - Reopening Of China, Ukraine War Affect Inflation Path - Fed Wants to Be Transparent, Not Surprise Markets by Decisions - To Get Inflation Down, Most Analysts Would Say Need Some Softening in Labor Market Conditions tweet at 1:13pm: Fed's Powell: - This Cycle May Be Different; Labor Market Remains Strong While Wages Are Moderating - Likely to See Some Softening in Labor Market Conditions - Wage Increases Have Come Down to a Level That's Closer to Sustainable

tweet at 12:49pm: Fed's Powell: - Will Take Certainly Into Next Year to Get Down Close to 2% - The Labor Market is Strong Because the Economy is Strong - Good That Disinflation Has Begun Without Damage to Jobs Market tweet at 12:50pm: Fed's Powell: - There is Now a Shortage of Workers, Feels More Structural Than Cyclical - The Pandemic Has Left a Lasting Market on Labor Supply in the U.S., Shortage Feels "Structural" - Right Now the Labor Market is at Least at Maximum Employment, if Not Beyond tweet at 12:53pm: Fed's Powell: - Big Part of Inflation Is Related to Pandemic Itself - Have Not Put A Dollar Number On A Balance Sheet Target - A "Couple of Years" Before Fed Nears End of Balance Sheet Decline tweet at 12:57pm: Fed’s Powell: - No One Should Think Fed Can Step in in Debt-Default Case - Not Looking For Any Changes to Federal Reserve Act - Fed System Institutionalizes Diversity of Thought - Ethics Rules Are Best in Class for Institution Like Fed tweet at 12:59pm: FED'S POWELL: THE FED HAS THE TOOLS TO ACHIEVE ITS 2% TARGET OVER TIME, BUT GLOBAL EVENTS INFLUENCE INFLATION.

tweet at 12:42pm: FED'S POWELL: MESSAGE FROM LAST WEEK'S FOMC IS THAT DISINFLATION HAS BEGUN BUT HAS A LONG WAY TO GO tweet at 12:42pm: POWELL: PROCESS WILL TAKE QUITE A BIT OF TIME tweet at 12:44pm: Fed's Powell: - Jobs Report Certainly Stronger Than Anyone Expected - Friday Jobs Report Stronger Than Expected but Shows Why This Will Be a Long Process - Need Policy at Restrictive Level for Period of Time - Probably Need to Do Further Interest-Rate Increases tweet at 12:48pm: Fed's Powell: - If Data Were to Continue to Come in Stronger Than Expect, Would Certainly Raise Rates More - 2% Inflation is a Global Standard and Not Something the Fed is Looking to Change - Expect 2023 to Be a Year of Significant Declines in Inflation tweet at 12:48pm: FED'S POWELL: I EXPECT 2023 TO BE A YEAR OF SIGNIFICANT DECLINES IN INFLATION.