(Reuters) - Federal Reserve Chair Jerome Powell on Thursday said that while the Fed is "not going to ignore" a significant tightening in financial conditions from higher bond yields, there is no "direct line" from there to a monetary policy response.
The Fed does not want to overtighten policy, Powell said at an International Monetary Fund event, but "the biggest mistake we could make is really, to fail to get inflation under control." The Fed is still trying to judge if it needs to do more and then will consider how long to keep rates high, he said.
