Thursday, 15 November 2018 07:58 WIB |
FISCAL & MONETARY |
Federal Reserve Chairman Jerome Powell on Wednesday night used a conversation with the president of the Dallas Fed to communicate optimism about the U.S. economy even as he acknowledged potential headwinds, particularly from abroad.
Powell was answering questions posed to him by Dallas Fed President Rob Kaplan, as well as from the audience.
With near-universal expectations of another quarter-point rate hike next month, Powell sounded committed to the gradual interest-rate-hike path that he™s previously communicated.
œI™m very happy about the state of the economy right now, he said early in his address. œWe™re in a good place, and I believe our economy can grow and grow faster, he said at the end.
He said, however, that the Fed is at a point where it has to take risks from moving either too quickly or too slowly œseriously, and he did identify risks to the economic outlook. Twice he noted that the global economy was slowing, which Powell called œconcerning.
Waning fiscal stimulus and the lagged effect of the Fed™s previous rate hikes are also concerns for Powell.
Source : Market Watch