Fed Chairman Jerome Powell discounts the risks of a trade war, says economy remains strong

Business Insider | 11/28/2017 | Reuters
Mkgirlz (Posted by) Level 3
Click For Photo: https://amp.businessinsider.com/images/5b4e203d7b67142d058b4bd8-1920-960.jpg

Fed Chairman Jerome Powell appeared before the Senate Banking Committee on Tuesday as part of his semi-annual testimony before Congress.

Powell said the job market will likely remain strong and inflation should hold below 2%.

Risk - Trade - War

He downplayed the risk of a trade war.

WASHINGTON (Reuters) - U.S. Federal Reserve Chairman Jerome Powell, discounting the risk that a trade war may throw a global recovery off track, said the economy is on the cusp of "several years" where the job market remains strong and inflation stays around the Fed's 2 percent target.

Testimony - Senate - Banking - Committee - Tuesday

In written testimony delivered to the Senate Banking Committee on Tuesday, the Fed chair signaled not just that he believes the economy is doing well, but that an era of stable growth may continue provided the Fed gets its policy decisions right.

"With appropriate monetary policy, the job market will remain strong and inflation will stay near 2 percent over the next several years," Powell said in one of the strongest affirmations yet that the Fed is within reach of its dual policy targets more than a decade after the United States endured a deep financial crisis and recession.

Fed - Way - Forward - Funds - Rate

The Fed "believes that - for now - the best way forward is to keep gradually raising the federal funds rate" in a way that keeps pace with a strengthening economy but does not raise rates so high or so fast that it weakens growth, Powell said.

Stock and bond markets were largely flat as Powell began his testimony, and analysts said there was little of surprise in the initial message.

Takeaway - Job - Market - Inflation - Percent

"His takeaway was the job market is strong, inflation is going to stay near 2 percent. To me that means two more hikes this year," said Peter Cecchini, chief market strategist at Cantor Fitzgerald in New York.

Powell did not address his individual views on the appropriate pace...
(Excerpt) Read more at: Business Insider
Wake Up To Breaking News!
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!