Powell: No intention of leaving Fed Board until DOJ probe is over

Fed's Powell: We're very strongly committed to keeping inflation expectations anchored at 2%. *POWELL: FED IS IN DIFFICULT SITUATION, NEEDS TO BALANCE RISKS POWELL: WHERE POLICY IS NOW IS THE RIGHT PLACE TO BE Fed's Powell: We don't want too restrictive a policy because of downside labor market risks. Fed's Powell: It is frustrating that non-housing services inflation hasn't come down.

FED'S POWELL: PAST RATE CUTS SHOULD HELP STABILIZE THE LABOR MARKET. ... POWELL: INFLATION OVERSHOOT IS MAINLY FROM GOODS AND TARIFFS ... Fed's Powell: A long period of higher gas prices would weigh on consumption, but I don't know if that will happen. FED'S POWELL: IF EVER GOING TO SKIP AN SEP, THIS WOULD BE A GOOD ONE ... *POWELL: OIL SHOCK WILL PUT SOME DOWNWARD PRESSURE ON EMPLOYMENT

*POWELL: IF WE DON'T SEE INFLATION PROGRESS, WON'T SEE RATE CUT Fed's Powell: Most longer-term expectations are consistent with the 2% goal. FED'S POWELL: PROGRESS ON GOODS INFLATION IS KEY FOCUS; CRUCIAL TO SEE REDUCTION THIS YEAR POWELL: 'WE JUST DON'T KNOW' WHAT EFFECTS OF ENERGY RISE WILL BE FED'S POWELL: WON'T TAKE LOOKING THROUGH INFLATION LIGHTLY; ENERGY PASS-THROUGH QUESTION ONLY ARISES AFTER GOODS INFLATION BOX IS CHECKED; CONTEXT OF FIVE YEARS ABOVE TARGET MATTERS

FED'S POWELL: THE VAST MAJORITY OF PARTICIPANTS DON'T SEE A HIKE AS A BASE CASE. ... Fed's Powell: At this meeting, a number of people mentioned that short-term inflation expectations rose. Fed's Powell: Growth upgrade likely due to growing confidence in productivity. Fed's Powell: Stagflation of the 1970s is not the case right now. Fed's Powell: We will learn a lot before the next meeting.

FED'S POWELL: UPWARD REVISION IN GROWTH PROJECTIONS IS PRODUCTIVITY. ... *POWELL: HAVEN'T STARTED TO SEE PRODUCTIVITY EFFECTS FROM AI *POWELL: RECENT PRODUCTIVITY TREND NOT BECAUSE OF GENERATIVE AI *POWELL: AI SHOULD CERTAINLY CONTRIBUTE TO PRODUCTIVITY TREND FED'S POWELL: IT WILL TAKE SOME YEARS OF POSITIVE REAL EARNINGS GAINS FOR PEOPLE TO FEEL GOOD AGAIN. ... *POWELL: OIL PRICES CAN LEAK INTO CORE INFLATION