Powell speech: Risks and uncertainty around inflation we see as higher

Federal Reserve Chairman Jerome Powell explains the decision to cut the policy rate, federal funds rate, by 25 basis points to the range of 4.25%-4.5% after the December meeting and responds to questions in the post-meeting press conference.

Key quotes

"Can dial back policy restraint more slowly if inflation not moving sustainably toward 2%."

"Policy is well-positioned to deal with risks."

"Can ease more quickly if labor market weakens unexpectedly or inflation falls more quickly."

"Today was a closer call but the right call."

"Decided it was the right call as best decision to foster achievement of goals."

"Risks are two-sided."

"Trying to steer between those 2 risks."

"Downside risks to labor market have diminished, but still cooling."

"Don't think we need further cooling to get inflation down to 2%

"Job creation is below the level that would hold jobless rate constant."

"Labor market quite gradually cooling."

"Inflation story broadly on track, housing services steadily coming down."

"Extent and timing language shows we are at or near point of slowing rate cuts."

"Slower pace of rate cuts reflects expectation of higher inflation."

"Risks and uncertainty around inflation we see as higher."

"Cuts we make next year will react to data."