Powell addressed various topics, including the Fed's inaccurate forecasts, the need to reduce inflation, and his prediction of no reduction in the reverse repo rate. He also mentioned that a cooling job market could benefit the economy, but a rate reduction this year would be inappropriate. Powell noted that it may take two years for the Fed to cut the rate and no member sees the possibility of a rate cut in 2023. He stressed the importance of price stability and expressed concern about the lack of progress in lowering core inflation. Additionally, Powell warned against waiting for salary fall and mentioned the Fed's close monitoring of the banking system. Most notably, he emphasized that the Fed will not fund the US government debt.
