Here is the summary of the statement and press conference:

• Rates remain unchanged
• Fed will determine the timing and pace of reducing its balance sheet.
• Fed believes the balance sheet run off will start after the process of increasing interest rates.
• Fed plans to reduce securities holding over time in a predictable manner.
• Fed is ready to adjust balance sheet anytime depending on the economic developments.
• Fed looking to end QE in March and raise rates in March. Markets pricing in 90% chance of rate hike in March and possibility of 50 bps in March.
• Policy path dependent on incoming data.
• In the press conference Powell sounded very hawkish where he said:
  • Powell doesn’t rule out hiking at every meeting. There are 7 meetings left this year which means rates would go to 2% rates.
  • Also said “quite a bit room to raise rates without hurting jobs”.
  • Sees risk that inflation will stay high longer than expected.
  • We may move sooner and faster on the balance sheet than before.
  • Inflation situation “slightly worse” than December.
  • We will discuss balance sheet at the next two meetings.