Federal Reserve Chair Jerome Powell discussed "how global efforts to boost resilience in the financial sector over the past decade have been an important success" in a speech at the Banco de Espana Fourth Conference on Financial Stability, Madrid, Spain.

What he also did was, again, set the stage for a more conservative and hawkish view of the economy combined with the need for additional interest rate increases. Actions that maybe might contain inflation … but could also bring on a recession as the needed tool.

Part of the preparation was noting where things weren't moving in the directions the Fed thinks necessary for prices to come down. "Growth in consumer spending has picked up this year, and some indicators in the housing market have turned up recently," he said. The labor market is tight with strong payroll gains. "While the jobs-to-workers gap has declined, labor demand still substantially exceeds the supply of available workers." No mention of supply chain or increased corporate profits.