Fed’s Powell: Moderate wage gains show job market not excessively tight
Powell in Chicago
Powell in Chicago
- Further gradual rate hikes best promote growth
- He and colleagues believe US economy will require gradual hikes
- Risks to economic outlook are roughly balanced
- 12-month inflation readings should move up notably this spring
- Inflation could rise to unwelcome levels if the Fed waits too long
- Balance sheet reduction is going smoothly
- Gradual rate hike approach has reduced risks for the economy
- Had thorough discussion of inflation at the January meeting and he thinks inflation is influenced by the inflation market
The headline sounds dovish but the text is balanced and virtually identical to his stance in the FOMC press conference.
Powell will take questions after his speech. Watch live here.
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