Quotes
With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance. We know that reducing policy restraint too fast or too much could hinder progress on inflation,
Powell said in his prepared remarks
Our research team has taken all rate cuts off the table because they thought that the dynamics of the potential inflationary effect would cause the Fed to hold back,
he told CNBCWe have to get comfortable with this idea that inflation is sticky at a higher level than what we were used to in the past,
said Erik Aarts, senior fixed income strategist at Touchstone Investments
I'd love to see that broadening, but I think this is really a setback to that trend,
Ablin saidThe rise in inflation expectations that we've seen with consumers recently, combined with this hotter-than-expected January CPI report, certainly shifts some of the risks over to the inflation outlook,
said Sam Millette, director of fixed income at Commonwealth Financial NetworkOur base case was slowing growth, slowing inflation,
said Jack Ablin, chief investment officer at Cresset CapitalInflation acceleration is more concerning than usual right now,
Jason Pride, chief of investment strategy and research at Glenmede, said in a noteThe prospect of new trade barriers has the potential to further fuel inflationary pressures by increasing costs for businesses and consumers,
he saidShould this month's hotter and broader reading portend a resurgence in inflation in the coming months, the Fed could end up needing to raise interest rates in the second half of 2025,
he said
It’s possible that the economy would evolve in ways that, because of tariffs, or partly because of tariffs, that we would need to do something with our policy rate but we can’t know what that is until we actually know what policies are enacted,
Powell told the House Financial Services Committee, although he repeatedly declined to comment on whether the proposed tariffs were good or bad for the economy
The Fed will see January’s hot inflation print as confirmation that price pressures continue to bubble beneath the economy’s surface,
Bill Adams, chief economist for Comerica Bank, said in a note to clients
Rome wasn’t built in a day,
Vice President JD Vance told CBS News last monthInterest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!! Lets Rock and Roll, America!!!
he wrote
That's driving price firmness, demand firmness,
Moynihan said
Rates are restrictive, but there was not enough sort of inflation progress that we made,
to cut rates, ... Moynihan saidRecent inflation prints, coupled with a strong jobs market, will allow patience from the Federal Reserve who will likely hold policy at its target range of 4.25%-4.50% in March,
said Josh Hirt at Vanguard
The market is taking Powell’s comments in stride,
said Frederic Neumann, chief Asia economist at HSBC Holdings Plc in Hong Kong
As we enter 2025, the economy is in a good place,
New York Fed President John Williams told a conference in New York, according to prepared remarks
From where we are now, a number of signs indicate that inflation will continue to move toward our two percent longer-run goal,
added Williams, a permanent voting member of the US central bank's rate-setting committee, referring to the Fed's long-term inflation targetOne way or another the US consumer will pay for tariffs -- they are on the hook,
said Hetal Mehta, head of economic research at St James's Place