This is CBS Eye in the World. I'm John Batch.

Jerome Powell speaking to an audience that was very keen, European Central Bank's annual

symposium in Portugal, very keen to hear his thoughts about where the Federal Reserve

is now that they've paused for the month of June.

Mr. Powell said, in part, policy hasn't been restrictive for very long, so we believe

there's more restriction coming. To interpret this, I welcome Veronique de Rige, of the Mercatus

Center, my guide on the mysteries of the Federal Reserve. You will recall the story so far,

ten raises in very quick time from the spring of 22 until now the spring and summer of 23,

with more expected or not. Veronique, a very good evening to you, policy hasn't been restrictive

for very long. It's been a year. There's lots of squeaking going on in the markets. Mr. Powell,

in this interview where he talks to the European audience, says he doesn't anticipate cornflation

will return to the Central Bank's 2% target until 2025. That's years from now after the election.

Does that sound right to you? Good evening to you, Veronique.

Good evening, John. Yes, it sounds right. I mean, I don't have a crystal ball.

But considering it seems that inflation has settled, at least cornflation has settled.

And I think that the last bit that needs to be done is going to be much harder.

It's a harder path than what we've experienced so far. In part, because part of what was picked

up in the inflation numbers were also restriction on supply. And these are gone. And so with the

increase in interest rates, it was not surprising that at first inflation started to go down fairly

quickly. But what remains to be done is hard, especially with a strong labor market

and still so much money rolling into the economy.

Mr. Powell had other remarks about the expectation for the next Federal Reserve meeting,

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