Powell Says Fed 'Proceeding Carefully' on Policy Path

The transcript discusses how monetary policy impacts financial conditions, which in turn affect economic activity, employment, and inflation. It highlights the recent tightening of financial conditions and the role of bond yields. The speaker emphasizes the commitment to returning inflation to 2% and the challenges of balancing the risks of over-tightening or under-tightening monetary policy. The approach to policy decisions is cautious, considering uncertainties and the evolving economic outlook.

Why is the committee proceeding carefully in light of the uncertainties and risks?

What factors will the committee consider when making decisions about additional policy firming?