FED's Powell:

We have a good ways to go on shrinking the balance sheet.

The neutral interest rate must have moved up, at least in the short term.

We see current Fed policy as restrictive.

The Fed has made quite a lot of progress on inflation.

The economy is growing around 2%, and with inflation and jobs, these are good numbers.

The Fed wants to be more confident about inflation.

I do have some confidence in inflation coming down, but I am not prepared to say I am sufficiently confident it is coming sustainably down to 2% yet.

I do have some confidence that inflation is headed lower.

I don't have a particular inflation number in mind for cuts.

We want to have greater confidence, which means more good inflation readings.

You don't want to wait until inflation gets all the way to 2% to ease policy.