Powell speech: Debt limit issue was not important in today's policy decision

FOMC Chairman Jerome Powell comments on the policy outlook after the Federal Reserve's decision to raise the policy rate by 25 basis points to the range of 5-5.25% following the May policy meeting.

Key quotes

"No one should assume the Fed can protect the economy from a failure to pay bills on time."

"Debt ceiling did come up in discussions."

"Talked about debt limit issue as a risk to the outlook."

"Debt limit issue was not important in today's monetary policy decision."

"Was raised by some as a risk but not critical to today's decision."

"The feFebruary 14 presentation was a general presentation on interest rate risks."

"There was one page on Silicon Valley Bank."

"Nothing in the February 14 briefing about the risk of a bank run."

"Staff was going to do a horizontal assessment of banks, not presented as urgent or alarming."

"Many banks are now attending to liquidity."

"Financial stability tools and monetary policy tools are working well together."