Powell Says Fed Is 'Waiting and Watching' With Patience on Rates

11 January, 2019, 08:52 | Author: Regina Silva
  • Consumer credit outstanding

While markets may be concerned about global trade tensions and slower growth overseas, Powell said there is no evidence of a USA recession on the horizon.

With no sign of excessive inflation or outsized risk in financial markets, Powell said the Fed would be "waiting and watching" in coming months.

"We would have a less clear picture into the economy if it were to go on much longer", Powell said. "We don't get distracted".

"Chairman Powell chose to make no news at his latest interview".

Powell also said he didn't think it would be appropriate to reject an invitation to meet with Trump, but he hasn't yet received such an invitation.

Trump has urged the Fed not to raise interest rates at all this year.

He also downplayed December predictions from Fed policymakers showing that, at the median, interest rates would be raised twice this year.

Drip, Drip, Drip: Ex-Sanders Staffer Accuses Top Aide Of Sexual Assault
They added: "To be clear: no one who committed sexual harassment in 2016 would be back if there were a 2020 campaign". Trump himself has been accused by several women of sexual misconduct, but has denied the allegations.


Jerry Jones buys quarter-billion dollar yacht with helipads, plural
Jones bought America's Team for $140 million back in 1989 and just took care of a $250 million price tag for Bravo Eugenia . The vessel was made in the Netherlands and was then delivered to Jones right before Christmas on December 20th.


USA veteran reportedly held prisoner in Iran for months
The Trump administration has not engaged in a dialogue with the Iranians to seek the current prisoners' release. She said the State Department had not contacted her and she was unaware he was in prison until reached by CNN .


That prospect has cheered markets, which had grown anxious that the Fed was not taking into account a variety of headwinds that could slow US growth this year. Minutes of the December meeting released on Wednesday showed that many officials felt the central bank "could afford to be patient about further policy firming", indicating the Fed could place interest rates on hold through March or longer as it waits for clarity on risks to global growth that could affect the USA economy. The Fed cut the rate to nearly zero during the financial crisis but has since raised it to a "neutral" level, meant to neither stimulate nor constrain the economy. Traders were already wary of statements Powell made in December about rate hikes. He also made clear that applies to the Fed's approach to its $4.1 trillion balance sheet, which the central bank is now reducing by a maximum of $50 billion per month.

Since the meeting, Fed officials have indicated they're less inclined to keep raising than their statement and projections for two hikes in 2019 had suggested.

Powell noted that the Fed's holdings were around $1 trillion before the 2008 crisis.

The balance sheet "will be substantially smaller than it is now", though bigger than it was before the crisis, Powell said. Markets have expressed concerns that the Fed's operations to reduce the balance sheet could be depressing the markets and ultimately slow growth.

Still, Powell's comments and those of other officials "are developing a new narrative".

In a speech Wednesday, Charles Evans, president of the Fed's Chicago regional bank, said that modest inflation allowed the Fed to "wait and carefully take stock of the incoming data and other developments" before deciding on future rate hikes.

Recommended:

  • Missing Wisconsin teen found alive

    Missing Wisconsin teen found alive

    Closs's disappearance was the subject of a nationwide search for the teen, with an AMBER Alert issued for the teen. Naiberg wrote "there are no words to describe" the feeling of having so many people come together to help.
    No, Samsung isn’t pre-installing Facebook on your phone

    No, Samsung isn’t pre-installing Facebook on your phone

    Other companies including LG, Sony, Verizon, and AT&T have similar deals with app makers, the report notes. "Time to move on". Facebook said in a statement that the app does not collect data or transmit it to Facebook's servers once it's been hidden.
    New York City To Roll Out Program Guaranteeing Health Care to Residents

    New York City To Roll Out Program Guaranteeing Health Care to Residents

    In his remarks, de Blasio was clear where he stands. "We want it to be seamless; if you have questions, here's where to call". Notably, the press release lacked many details on how the city will fund the plan and how much enrollees would have to pay.
  • New reports states Meghan Markle won't be returning to Suits

    New reports states Meghan Markle won't be returning to Suits

    The news comes just days after Meghan's father, Thomas Snr., begged her to contact him in another press interview . In this episode of The Windsors, we examine Meghan's life before she became the Duchess of Sussex.
    Redmi Note 7 debuts with 48 MP camera, wonderful  price tag

    Redmi Note 7 debuts with 48 MP camera, wonderful price tag

    As a result, it claims to outperform other Kirin 710 and Snapdragon 660 powered smartphones as it scores 144,599 points on Antutu. The selfie camera is tucked in the small waterdrop notch at the top of the 6.3-inch display that has a 2340x1080 resolution.
    USA  official says China trade talks 'went just fine'

    USA official says China trade talks 'went just fine'

    The U.S. push for enforceable targets in a deal underscores the challenge of reaching a lasting truce. President Donald Trump tweeted "Talks with China are going very well! " late on Tuesday in Beijing .
  • Jose Mourinho received an absolutely massive pay-off after Man United sacking

    Jose Mourinho received an absolutely massive pay-off after Man United sacking

    The Red Devils informed the 55-year-old that his services were no longer required at Old Trafford on December 18 . And Mourinho has once again refused to speak in a bad light about former club Manchester United .
    $136 Billion And Amazon In The Middle Of Jeff Bezos' Divorce

    $136 Billion And Amazon In The Middle Of Jeff Bezos' Divorce

    Jeff and MacKenzie, divorcing after 25 years of marriage , don't have a prenup, according to TMZ . "It's going to be a beauty". No information is available on how the couple are dealing with the financial implication of the divorce .
    Phoenix police seek workers' DNA after woman in coma gives birth

    Phoenix police seek workers' DNA after woman in coma gives birth

    The department of health ordered Hacienda to implement "heightened safety measures", spokeswoman Melissa Blasius-Nuanez said. The outlet also reported that the patient has been in a vegetative state for at least a decade after almost drowning.
  • President Trump Just Cancelled His Trip to Davos Because of the Shutdown

    President Trump Just Cancelled His Trip to Davos Because of the Shutdown

    Trump and Democrats are at an impasse over funding for Trump's proposed wall at the southern border. The partial United States government shutdown is in its 20th day, with no sign of an agreement.

    The ‘Sopranos’ Prequel Movie Will Feature a Young Tony Soprano

    The Many Saints of Newark is set to begin production this year, with casting now underway. Now Chase has confirmed a young Tony will be part of the storyline.
    2 more flu deaths in county bring season’s death toll to 11

    2 more flu deaths in county bring season’s death toll to 11

    For those who get a flu shot and still contract influenza , symptoms tend to be milder and not last as long, research has shown. Thirteen flu-related deaths have been reported nationally by the Centers for Disease Control and Prevention.


Popular

Samsung Galaxy S10 First Leaked Photo Revealed
That meant fans had absolutely no incentive to upgrade, and Samsung's high-end phone sales suffered tremendously as a result. There would be major changes in the design and undoubtedly would be the most powerful device of the S series of the year.

Steelers president on Antonio Brown: ‘We’ll look at all the options’
We all know there have been problems with Brown's attitude and his relationship with the team over the last two seasons. Art Rooney II publicly said it is "hard to envision" Antonio Brown remaining with the Pittsburgh Steelers in 2019.

Chelsea striker Michy Batshuayi has loan terminated by Valencia, confirms general director
It is believed that Crystal Palace, Fulham and former club Marseille are all courting Batshuayi's status, be it loan or permanent. Premier League rules do not permit English top-flight clubs to loan more than one player to the same club.

Apple cuts production plan for new iPhones by 10% for first quarter
Apple took a direct hit from the issue and even lost its number one spot to Microsoft who in turn lost it to Amazon . Chief Executive Tim Cook reiterated in an interview with CNBC on Tuesday that India was a major focus for Apple.

Marko Arnautovic delivers West Ham transfer bombshell
According to the Daily Mail , the Hammers consider Bournemouth's centre-forward a top target if they need to sign a new attacker. This is what he wants. " It is his great desire that West Ham accept the offer from China ", added Danijel Arnautovic.

Trump's former lawyer to testify publicly before Congress
Cohen's indictment and guilty plea for making false statements to Committee investigators". Cummings said the committee has no intention of interfering in ongoing criminal probes.

Warrant for Cristiano Ronaldo's DNA issued in connection with rape investigation
Once there, say the court papers, he urged her into his hot tub, but she refused because she did not want to spoil her dress. But the Las Vegas Police Department did re-open this case in September of 2018 when allegations again emerged.

Jaguar Land Rover to cut 4500 jobs
Vehicle giant Jaguar Land Rover is to cut 4,500 jobs under plans to reduce costs by £2.5 billion, the company has announced. The carbon dioxide reductions are part of the effort to reduce emissions of greenhouse gases blamed for global warming.

Pompeo: Erdogan threats against Kurds will not stop Syria withdrawal
If that is achieved, if everybody abides by global norms of behavior, then there'll be no problem. "It's important. Why did Pompeo mention Iran? "We all want to make sure that whatever threat there is mitigated", Safadi said.

IBM unveils its first quantum computer for commercial use
The casing is important: Qubits lose their quantum computing properties outside of very specific conditions. Classical computation to provide secure cloud access and hybrid execution of quantum algorithms.