Powell: Don't see case for meaningfully restrictive policy; Every supply shock can drive up inflation, unemployment

*POWELL: PROSPECTS OF CORE INFLATION RISING ARE REAL *POWELL: POLICY STANCE IN A VERY GOOD PLACE Powell: The labor market shows more signs of stabilizing while inflation is 'kind of misbehaving' pic.twitter.com/tmvno3QAyv FED CHAIR POWELL: WE ARE NOW AT THE HIGH END OF NEUTRAL — SLIGHTLY RESTRICTIVE — WHICH IS PRECISELY THE RIGHT PLACE TO BE, ALLOWING US TO WAIT AND OBSERVE HOW THINGS UNFOLD BEFORE TAKING ACTION. FED CHAIR POWELL: WE BELIEVE THE POLICY RATE IS IN A GOOD PLACE — WELL POSITIONED TO MOVE IN EITHER DIRECTION; IF A HIKE BECOMES NECESSARY, WE WILL SIGNAL AND DELIVER IT, AND THE SAME APPLIES IF A CUT IS WARRANTED. POWELL: OIL EFFECTS ON U.S. LESS THAN ON EUROPE, ASIA POWELL: IF THIS GOES ON FOR MUCH LONGER WILL FEEL IT MUCH MORE

Fed's Powell: I don't see the labor market as a source of inflation POWELL: PEOPLE NOT SAYING WE NEED TO HIKE NOW FED CHAIR POWELL: WE DO NOT WANT TO CONFUSE MARKETS REGARDING OUR REACTION FUNCTION, ADDING THAT IT'S A WORTHWHILE DEBATE TO BE HAVING — WITH A SOUND ARGUMENT ON THE OPPOSING SIDE AS WELL. FED CHAIR POWELL: CONCERN OVER MONETARY POLICY CREDIBILITY IS NOT WHAT'S DRIVING MY DECISION TO REMAIN IN ROLE, ADDING THAT WARSH POSSESSES THE SKILLS TO PERFORM WELL. POWELL: I WOULD NEVER BE A SHADOW CHAIR POWELL: I WILL BE A GOVERNOR POWELL: I RESPECT THE ROLE OF CHAIR

FED CHAIR POWELL: WE WILL STAY THE COURSE UNTIL INFLATION RETURNS TO TARGET, ACKNOWLEDGING THAT EVENTS KEEP EMERGING THAT PUSH COSTS HIGHER AND THAT REACHING 2% COULD BE VERY COSTLY — BUT THE GOAL IS TO GET THERE OVER TIME WHILE INFLICTING THE LEAST POSSIBLE DAMAGE. POWELL: THE UNEMPLOYMENT RATE IS QUITE CLOSE TO ITS NATURAL LEVEL, THOUGH THE LABOR MARKET DOESN'T FEEL STRONG TO SOME BECAUSE QUITS AND HIRES REMAIN LOW, WITH FEW NEW OPPORTUNITIES. *POWELL: DOESN'T FEEL LIKE GOOD MARKET FOR THOSE WITHOUT JOBS FED CHAIR POWELL: THE LABOR MARKET IS IN AN UNUSUAL AND UNCOMFORTABLE BALANCE, WITH INFLATION REMAINING THE PRIMARY ISSUE TO ADDRESS; HE EXPECTS TARIFF-DRIVEN INFLATION TO EASE THIS YEAR, WITH THAT MODERATION SET TO BEGIN SOON, AND VIEWS THE CURRENT POLICY STANCE AS WELL… FED'S POWELL Q&A: 'NOT LOOKING TO BE A HIGH-PROFILE DISSIDENT' ON BOARD; BEEN CHALLENGING TO DEAL WITH SIX YEARS OF SUPPLY SHOCKS; 'A DIFFERENT WORLD' #Powell #FOMC #FederalReserve #economy

FED CHAIR POWELL: THE ECONOMY IS POWERING THROUGH ONE SHOCK AFTER ANOTHER, WITH PEOPLE STILL SPENDING, AND HE HAS NOT YET OBSERVED MUCH OF A SLOWDOWN FROM RISING GASOLINE PRICES.