Fed Chair Jerome Powell said in a panel discussion at the ECB forum that the “the clock is kind of running on how long will you remain in a low-inflation regime … The risk is that because of the multiplicity of shocks you start to transition into a higher inflation regime and our job is to literally prevent that from happening and we will prevent that from happening,”

Fed’s “aim” now is to raise interest rates without trigger a recession. And, ” we believe there are pathways to achieve that”.

“We hope that growth will remain positive,” Powell. “Overall the US economy is well positioned to withstand tighter monetary policy.”

Cleveland Fed President Loretta Mester told CNBC today, “if conditions were exactly the way they were today going into that meeting (in July) — if the meeting were today — I would be advocating for 75 because I haven’t seen the kind of numbers on the inflation side that I need to see in order to think that we can go back to a 50 increase.”

“I think getting interest rates up to that 3-3.5%, it’s really important that we do that, and do it expeditiously and do it consistently as we go forward, so it’s after that point where I think there is more uncertainty about how far we’ll need to go in order to rein in inflation,” she said.

“At the Fed, we’re on a path now to bring our interest rates up to a more normal level and then probably a little bit higher into restrictive territory, so that we can get those inflation rates down so that we can sustain a good economy going forward,” she said. “Job one for us now is to get inflation rates under control, and I think right now that’s coloring how consumers are feeling about the economy and where it’s going.”

New York Fed President John Williams told CNBC today, “A recession is not my base case right now. I think the economy is strong. Clearly financial conditions have tightened and I’m expecting growth to slow this year quite a bit relative to what we had last year.”

“But that’s not a recession,” he noted. “It’s a slowdown that we need to see in the economy to really reduce the inflationary pressures that we have and bring inflation down.”

On interest rate, Williams said, “we’re far from where we need to be”. Rate can rise from current 1.50-1.75% to 3-3.5%. “My own baseline projection is we do need to get into somewhat restrictive territory next year given the high inflation, the need to bring inflation down and really to achieve our goals,” he said. “But that projection is about a year from now. Of course, we need to be data dependent.”