Fed Chair Powell: We will stay the course until inflation returns to target, acknowledging that events keep emerging that push costs higher

*POWELL: DON'T SEE CASE FOR MEANINGFULLY RESTRICTIVE POLICY *POWELL: EVERY SUPPLY SHOCK CAN DRIVE UP INFLATION, UNEMPLOYMENT *POWELL: TAKE WARSH AT HIS WORD THAT HE'LL STAND UP TO TRUMP FED CHAIR POWELL: GASOLINE PRICES WILL HINGE ON HOW LONG THE STRAIT REMAINS CLOSED, RAISING THE QUESTION OF WHETHER CONSUMER SPENDING WILL PULL BACK ENOUGH TO OFFSET THE INFLATIONARY EFFECTS — AND IT IS NOT OBVIOUS THAT THIS WOULD WARRANT A POLICY RATE MOVE. POWELL: FED INDEPENDENCE IS AT RISK FED CHAIR POWELL: FED INDEPENDENCE IS ENSHRINED IN LAW — WE HAVE EVEN HAD TO GO TO COURT TO DEFEND IT — BUT IT EXTENDS BEYOND THE LAW AS WELL, REQUIRING THAT THE BOUNDARIES BETWEEN THE TREASURY AND THE FED BE RESPECTED.

*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: 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.