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Below are some key takeaways from the speech delivered by the FOMC Chairman Jerome Powell at  an Economic Club of New York luncheon.

  • Gradual rate hikes balance risks to forecast.
  • ‘Great deal to like about’ U.S. Economic outlook.
  • Fed balancing risks of shortening expansion on one hand, higher inflation and instability on other.
  • Repeats sees ‘moderate’ overall vulnerabilities to financial stability.
  • Expects solid U.S. Growth, low unemployment, near-target inflation.
  • No pre-set policy path; paying ‘very close attention’ to data.
  • ‘Close’ to price stability, maximum employment mandates.
  • Policy rate ‘just below’ estimates of neutral.
  • Concerned about leveraged corporate borrowing, which could exacerbate economic downturn.
  • Losses related to leveraged borrowing unlikely to imperil core financial firms, overall stability.
  • No dangerous excesses in stock market.
  • Fed working with U.S. Firms to prepare for full range of Brexit outcomes.
  • New financial stability report aims to boost democratic legitimacy of Fed.