Powell Q&A: We're not at the stage where bond rates need to be taken into policy | Forexlive

We’ve watched the run-up in bond rates and they’re nowhere near a year ago. We will see where they settle
We’ve all read decompositions on why yields have moved up but we think they’re about fewer downside risks and better growth (not inflation)
We don’t guess, speculate or assume on fiscal policy
Data has been stronger than expected in the inter-meeting period
Some of the downside risks have been taken away
Overall, we’re feeling good about economic activity
We had one inflation report that wasn’t as good as hoped
We will make a decision on rates in December when we get there
Jobs report wasn’t terrible but was worse than expected
The latest economic data has been strong
Policy is still restrictive but we feel it is still restrictive and labor market has cooled a great deal and is essentially in balance
We don’t need further cooling to achieve our goals
Powell says there is no signal in the removal of the line about “gaining greater confidence”
when we are at neutral, or close to neutral, we might slow the pace of rate cuts…something we are just beginning to think about