Fed chair Jerome Powell to speak on market concerns Thursday

Fed chair Jerome Powell to speak on market concerns Thursday

In that appearance Powell emphasized the Fed's flexibility and patience in evaluating data, easing expectations of steady rate hikes in a message amplified by a half dozen other Fed officials in recent days. He said an "extended" shutdown would show up in economic data "pretty quickly" and, since it shutters some agencies that provide economic data, it would also make the picture of the economy less clear for the Fed.

"There is no such plan", Powell said.

USA stocks initially turned lower after Powell said the central bank is sticking with its process of shrinking its balance sheet to a more normal level, which removes stimulus put into place to revive the economy following the financial crisis and recession a decade ago.

"We're in a place where we can be patient and flexible", he said.

"Especially with inflation low and under control, we have the ability to be patient and watch patiently and carefully as we. figure out which of these two narratives is going to be the story of 2019", Powell said at the Economic Club of Washington.

His comments and remarks this week by other Fed officials have all suggested the central bank is prepared to pause its string of rate hikes at the beginning of this year to assess the impact of the Fed's credit tightening. He said he didn't know the exact level.

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He won The Open Championship in 2007 and 2008, and the Professional Golfers' Association (PGA) Championship in 2008. Even mentioning a cup of coffee has been known to tip him into angst about how best to make one. "Good guy.

It was yet another dovish signal from one of the members of the monetary policy committee that votes eight times a year on interest rates, and likely to reassure financial markets.

The Fed chief was also asked about the partial US government shutdown. The Fed's communications - and a Bloomberg News report that President Donald Trump had discussed firing Powell - helping bring on the worst December for stocks since the Great Depression.

While those initial comments boosted stocks, they later slipped when Powell said the Fed would shed significantly more assets than it already has. Rubenstein also hosts an interview show on Bloomberg Television. Fed chairs have met with presidents in the past, he added. It would not want to wait too long to see overseas weakness affect the USA economy, he added.

While there is wide agreement that the USA economy will grow more slowly than the roughly 3 per cent rate of 2018, there's a lot of debate about how fast the slowdown will be.

He also downplayed December predictions from Fed policymakers showing that, at the median, interest rates would be raised twice this year. Financial markets are incorporating a variety of risks to the outlook, ranging from slowing global growth to the potential for a protracted trade war with China.

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