Powell speech: A strong majority of Fed policymakers expect 2 or more rate hikes by year end

US Federal Reserve (Fed) President Jerome Powell is speaking at the Fourth Conference on Financial Stability hosted by the Bank of Spain, in Madrid, on Thursday.

Key quotes

A strong majority of fed policymakers expect 2 or more rate hikes by year end

Repeats labor market 'very tight,' inflation 'well above' goal

Some indicators in the housing market have turned up; housing sector activity still far below its peak

US core pce inflation likely rose 4.7% in May from year earlier; overall pce index estimated to have risen 3.9%

Will take time for full effects of monetary restraint to be realized, especially on inflation

Process of getting to 2% inflation 'has a long way to go'

Bank stresses that emerged in march 'may well lead' to a further tightening in credit conditions

Extent of effects from tighter credit conditions remains uncertain

Economy faces headwinds from tighter credit conditions

Cannot take resilience of financial system for granted

US banking system strains have eased, deposit flows have stabilized

I look forward to evaluating proposals for changes to supervision, regulation of banks of the size of svb, and implementing them where appropriate