 Let's listen to a little Jay Powell and what he's got to say and go from there. It's ought to be interesting. Share my tab. Let's take a listen. We have both the tools we need and the result that it will take to restore price stability on behalf of American families and businesses. Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy. Without price stability, the economy does not work for anyone. In particular, without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all. Today, the FOMC raised its policy interest rate by three-quarters of a percentage point, and we anticipate that ongoing increases will be appropriate. We are moving our policy stance purposefully to a level that will be sufficiently restrictive to return inflation to 2%. In addition, we are continuing the process of significantly reducing the size of our balance sheet. I will have more to say about today's monetary policy actions after briefly reviewing economic developments. The U.S. economy has slowed from the historically high growth rates of 2021, which reflected the reopening of the economy following the pandemic recession. Recent indicators point to modest growth of spending and production. Growth in consumer spending has slowed from last year's rapid pace, in part reflecting lower real disposable income and tighter financial conditions. Activity in the housing sector has weakened significantly, in large part reflecting higher mortgage rates. Higher interest rates and slower output growth also appear to be weighing on business-fixed investments, while weaker economic growth abroad is restraining exports. As shown in our summary of economic projections, since June, FOMC participants have marked down their projections for economic activity, with the median projection for real GDP growth standing at just 0.2% this year and 1.2% next year, well below the median estimate of the longer-run normal growth rate. Despite the slowdown in growth, the labor market has remained extremely tight, with the unemployment rate near a 50-year low, job vacancies near historical highs, and wage growth elevated. Job gains have been robust, with employee employment rising by an average of 378,000 jobs per month over the last three months. The labor market continues to be out of balance, with demand for workers substantially exceeding the supply of available workers. The labor force participation rate showed a welcome uptick in August, but has little changed since the beginning of the year. FOMC participants expect supply and demand conditions in the labor market to come into better balance over time, easing the upward pressure on wages and prices. The median projection in the SEP for the unemployment rate rises to 4.4% at the end of next year, a half percentage point higher than in the June projections. Over the next three years, the median unemployment rate runs above the median estimate of its longer-run normal level. Inflation remains well above our 2% longer-run goal. Over the 12 months ending in July, total PCE prices rose 6.3%, excluding the volatile food and energy categories, core PCE prices rose 4.6%. In August, the 12-month change in the Consumer Price Index was 8.3%, and the change in the core CPI was 6.3%. Price pressures remained evident across a broad range of goods and services. Although gasoline prices have turned down in recent months, they remain well above year-earlier levels, in part reflecting Russia's war against Ukraine, which has boosted prices for energy and food and has created additional upward pressure on inflation. The median projection in the SEP for total PCE inflation is 5.4% this year and falls to 2.8% next year, 2.3% in 2024, and 2% in 2025. Participants continue to see risks to inflation as weighted to the upside. Despite elevated inflation, longer-term inflation expectations appear to remain well-anchored, as reflected in a broad range of surveys of households, businesses, and forecasters, as well as measures from financial markets. But that is not grounds for complacency. The longer the current bound of bout of high inflation continues, the greater the chance that expectations of higher inflation will become entrenched. The Fed's monetary policy actions are guided by our mandate to promote maximum employment and stable prices for the American people. My colleagues and I are acutely aware that high inflation imposes significant hardship as it erodes purchasing power, especially for those least able to meet the higher costs of essentials, like food, housing, and transportation. We are highly attentive to the risks that high inflation poses to both sides of our mandate, and we are strongly committed to returning inflation to our 2% objective. At today's meeting, the Committee raised the target range for the federal funds rate by ¾ of a percentage point, bringing the target range to 3-3.25%. And we are continuing the process of significantly reducing the size of our balance sheet, which plays an important role in firming the stance of monetary policy. Over coming months, we will be looking for compelling evidence that inflation is moving down, consistent with inflation returning to 2%. We anticipate that ongoing increases in the target range for the federal funds rate will be appropriate. The pace of those increases will continue to depend on the incoming data and the evolving outlook for the economy. With today's action, we have raised interest rates by 3 percentage points this year. At some point, as the stance of monetary policy tightens further, it will become appropriate to slow the pace of increases while we assess how our cumulative policy adjustments are affecting the economy and inflation. We will continue to make our decisions meeting by meeting, and communicate our thinking as clearly as possible. Restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy. As shown in the SEP, the median projection for the appropriate level of the federal funds rate is 4.4% at the end of this year, 1 percentage point higher than projected in June. The median projection rises to 4.6% at the end of next year and declines to 2.9% by the end of 2025, still above the median estimate of its longer run value. Of course, these projections do not represent a committee decision or plan, and no one knows with any certainty where the economy will be a year or more from now. We are taking forceful and rapid steps to moderate demand so that it comes into better alignment with supply. Our overarching focus is using our tools to bring inflation back down to our 2% goal and to keep long-term inflation expectations well anchored. Reducing inflation is likely to require a sustained period of below trend growth, and it will very likely be some softening of labor market conditions. Restoring price stability is essential to set the stage for achieving maximum employment and stable prices over the longer run. We will keep at it until we're confident the job is done. To conclude, we understand that our actions affect communities, families, and businesses across the country. Everything we do is in service to our public mission. We at the Fed will do everything we can to achieve our maximum employment and price stability goals. Thank you, and I look forward to your questions. Hi, Chair Powell. Thank you for taking our questions. Gina Smiley from the New York Times. I wonder if you could give us a little detail around how you'll know when to slow down these rate increases and how you'll eventually know when to stop. So I will answer your question directly, but I want to start here today by saying that my main message has not changed at all since Jackson Hole. The FOMC is strongly resolved to bring inflation down to 2%, and we will keep at it until the job is done. So the way we're thinking about this is the overarching focus of the committee is getting inflation back down to 2% to accomplish that. We think we'll need to do two things in particular to achieve a period of growth below trend and also some softening in labor market conditions to foster a better balance between demand and supply in the labor market. So on the first, committees' forecasts and those of most outside forecasters do show growth running below its longer run potential this year and next year. On the second, though, so far there's only modest evidence that the labor market is cooling off. Job openings are down a bit. As you know, quits are off their all-time highs. There's some signs that some wage measures may be flattening out but not moving up. Payroll gains have moderated but not much. And in light of the high inflation we're seeing, we think we'll need to, and in light of what I just said, we think that we'll need to bring our funds rate to a restrictive level and to keep it there for some time. So what we'll be looking at, I guess, is your question. So we'll be looking at a few things. First, we'll want to see growth continuing to run below trend. We'll want to see movements in the labor market showing a return to a better balance between supply and demand. And ultimately, we'll want to see clear evidence that inflation is moving back down to 2%. So that's what we'll be looking for. In terms of reducing rates, I think we'd want to be very confident that inflation is moving back down to 2% before we would consider that. Thank you, Mr. Chairman. Steve Leesman, CMBC. Can you say a second? Okay. So that's pretty much it. I mean, look, I mean, we could listen to J-PAL all the time, but I think we got the gist of it, what he wants to do. He's not going to stop until the job is done. They want to hit 2%. Whether they make it or not, I have no idea. There's three things that they actually want to see. They want to take a look at supply and demand. They want to make sure that the inflation rate goes starting to actually decrease and the things that they're actually doing are working. So until that time happens, which I don't see that going down, and we just saw the CPI numbers, especially core inflation go up, or month over month, I guess, it's probably going to keep raising. So the question then is, what are we going to have until the end of the month? And I think I'm going to make sure that I'm not talking out of my left side, September. Okay, I was wrong. So there are a couple of more meetings. Let me share my screen coming up. So right now, they just got done with the September 2021 meeting. You're going to skip October. Hey, October is out. And then you get November 1 and 2. Remember, those are midterm times for America was they start to vote in or vote out different members of Congress. And then another one December 13th and 14th. So along that time, expect more high more rate hikes, will they go 100 basis points, 75 base points, 50 base points, no clue. But like he said, and it was interesting what he said there, he goes, Hey, we're going to make this or continue this on into 2023 and 2024 to maybe we can taper off in 2025. That's Jay Powell talking not me. And of course, if you want to fight the Fed like Ben talks about, go right ahead. That's not my game. Just here to just to a few little bits and that will take care of today for the news. So look, thanks for stopping by and hanging out with me for 25 minutes while me and Jerome Powell hanging out with us. So that's great. But that's it for the news. If you want to stick around, I'll answer everybody's questions, the best of my abilities. And we'll go from there. If not, take off, hit the like button, subscribe, sure. And we go from there. But thanks so much. I appreciate it. Now let's get into a little Q&A. Let's see what we got. You go bomb. 100 will be in some Joe printing by the president in red. Just remember, Hey, you know, it takes a village to destroy a nation. I will say that we're bouncing what we're bouncing up nicely. Let's take a peek. This ought to be good. Let me give her to this banner. So when the 75 base points were announced, we took a look at crypto and last hour dropped a little bit S&P and NASDAQ. Let's see how we do. Where are we? There we go. So maybe coming back. That's pretty good. S&P 500. Hey, look at that. Look at that. I'm very happy. We knew it the whole time, baby. Although I got to tell you, it would have been it would have behooved a couple of people to just sit around and just wait. What a nice little, and this happens almost every time. Nice. And then of course, for NASDAQ, how do we do? Hey, look at that. Wow. Now that is encouraging. Remember, NASDAQ is more of the tech sector and they're pretty good. I wonder if we could, yeah, okay, we'll take it. So smooth sailing folks and we're up again. And that's it. Let's sit here. Sean, my blood pressure is one of 75 basis points. That would be, that would be heavy, heavy, heavy around with fireballs and my friends. Nice. Sean Miller says, wrench me. I think we offered you yesterday. All right, let me see a pop up and then start handing out wrenches. Gary, thanks for showing up, Rob. Just like the army, all you got to do is just show up in the right uniform and usually things work out. Asking you shall receive a jerky is handing out stuff again, my man. Fine. We're at 3.25% of the same base point. Can we expect another 125 bits by end of the year? That would mean you're looking at a 75 and a 50. It's within reason. I don't see why not, especially because 2% is going to be tough to hit, but Alberto says it right. I don't know. I think Jerome's got in his head that it must be 2%, must be 2%, must be 2%. And to do that, you got to do a lot of damage. Wrecking ball. And that's what's up. Let's see. Brian gets a wrench. Heat hummer is bullish on food stamps. Chevo, you should have a wrench already. Rental homes are tangible assets. That's very true. And Shannon Miller, there you go. So I just three or four wrenches for the day. It's a pretty good day. I feel like I did something nice. If ETHW got a 100X debatable, I wouldn't go with that route, but that's just me. ETH is a security. Probably so. Well, that means that everything's a security. Revenue is proof of stake. Of course, ETHW is not. Congratulations, new rent holders. One green screen. That's a good idea. I need to make this green screen into to an NFT and just start dumping on everybody. Just like here we go, two ETH, and then just do a big rug pull. DCA into food stamps. That's pretty good. Well, it depends. If rate hikes do keep going, it was indicated, do you think land price will assimilate to housing? I'd be flat to go down. I will tell you this, if I like to buy land here and there and just hold on for years, because land's a great asset, depending especially as the city that you are living in as it grows out into that area. So the thing I have to remember is this, is if the interest rates go up and people are getting loans for land, I don't know why to do a bunch of that, but you could. Then of course, then the people that are trying to buy it, they'll get aced out because of the interest rates going up so they can't afford it. What does that mean? That people go, well, there's a less of a pool for people to buy. What does that mean? People who have cash on hand, when they say, hey, I know you got five offers and you're waiting for them to figure out which one it is, which one's actually going to approve? Tell you what, I'll pay you cash right now, a little bit less, but I'll pay you cash right now and let's just get this done. We get done in 24 hours. What would you do? All right, let's see. My macro for 10 years, pets, hot sauce. I don't know, nothing wrong with that. Our rental house is a security. Now, since they're yield generating, Gary wants a bite. There's an investment contract, so everything's a security to Gary Gensler, that's for sure. Market's rising fast and Amy's riseable. That's about all we can afford right now is a razor scooter. John's channel, are we in a recession or what? I believe we are, but economic factors, everybody's got another idea of what a recession is. I will tell you though, it is interesting about that job market, how there is such a demand for workers, but there is such a shortage of supply of workers to actually do things. One of those things you got to rethink, one of the reasons is the gig economy. A lot of people I know are just putting their jobs and just doing little things, side action, making pretty decent money and they're being their own boss. Would you take a 15% pay cut so you want to listen to your boss and show up at a specific time and deal with all that stuff? Or would you just take the haircut and work for yourself? Me personally, I'd rather work for myself every single time. Wow, let me get another one, membership gift. You are welcome. You're welcome. That's it right there. Tom Williams, I remember when Morgan raised 70%. I don't remember that, but I know that people I used to work with, they was telling me about in the 60s, they would say that mortgage rates were like 12, 13, 14%. I remember when I was bragging at 7, we got a 6.75 interest rate for this house, matter of fact. And I was bragging. People were like, yeah, it's really good. And of course, they went about 3% or 2%. So yeah. What time is the Twitter thing tomorrow? Will you stream it? No, but there's a link in the description, I think. Did I not? Maybe I didn't put it. Let's find out. Ah, didn't put it in there. Twitter, spaces, link. Or you can just follow me on Twitter. That's probably the easiest thing. And voila, hit refreshments there. All right, buddy. So I think, let me make sure I didn't miss anything. Jage says, I thought they were going to do a wonderful point and crush the market. I was hoping. I didn't think it was going to happen, but I was hoping. And lastly, the pool man said, is this the time to go on? Not for me. For you, it might be. But for me, I think we have some downward slides to go. Remember what Jerome Powell says, we will continue to tighten as time moves on. We will continue to raise rates as time moves on. And I don't know if the macro environment really supports a huge rally for a crypto or a sustained rally, a bear market rally. Sure. Sustained rally going into 2023, four and five for all time highs. I don't see it. There you go. That's it. So look, thanks for sticking with me with the Q&A. Appreciate it. If you liked today's video, thumbs up, subscribe, all the good stuff, but that is all. So thanks everybody for stopping by. I do appreciate it. I'll see you guys on the next one. Adios.