Fed's Powell: Rates, Balance Sheet Depend on Data

The transcript discusses the improved global economic outlook with rising growth and inflation. Domestically, risks are balanced between inflation and labor market overheating. The FOMC is advised to continue normalizing monetary policy, with a gradual increase in interest rates and a reduction in the balance sheet, contingent on economic data. Despite labor market performance suggesting faster tightening, inflation remains below target, advocating for patience.

What is suggested about the pace of raising rates in the context of economic performance?

What will influence the decisions regarding monetary policy normalization and balance sheet reduction?