Powell speech: Economy is very strong, labour markets extremely tight, inflation well above goal

Fed Chair Jerome Powell said in his post-FOMC meeting press conference on Wednesday that the US economy is very strong and the Fed thus expects to reduce the size of its balance sheet. The slowdown from Omicron was mild and brief, Powell added, noting that labour markets are extremely tight and improvements in labour markets have been widespread. Labour demand remains very strong, he added, and labour supply subdued and the Fed expects the labour market to remain strong. Inflation remains well above the Fed's goal, Powell said.