Powell said Fed policymakers would"proceed carefully as we decide whether to tighten further," but also made clear that the central bank has not yet concluded that its benchmark interest rate is high enough to be sure that inflation returns to the 2% target.
His remarks showed the Fed wrestling with conflicting signals from an economy where inflation has by some readings slowed a lot without much cost to the economy — a good outcome, but one that has raised the possibility that Fed policy is not restrictive enough to complete the job. "Powell continues to walk a tightrope," said Michael Arone, chief investment strategist at State Street Global Advisors."This year I think he is demonstrating that he is pleased with how far monetary policy has come and how inflation has been reduced. But he is still holding on tightly to this notion that they are watching it carefully and they still have work to do.”
A recent decline in measures of underlying inflation, stripped of food and energy prices,"were welcome, but two months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably," Powell said.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: brieflyza - 🏆 10. / 68 Read more »
Source: ReutersAfrica - 🏆 31. / 53 Read more »